Volatility ETFs Hit New All-Time Lows on Historic VIX Weekly Pullback

ETF Trends

The CBOE Volatility Index fell a record 39% last week, dragging volatility-linked ETFs that track VIX futures contracts to fresh all-time lows.

Volatility exchange traded products such as iPath S&P 500 VIX Short Term Futures ETN (VXX) and VelocityShares Daily 2x VIX Short-Term ETN (TVIX) fell to new record lows on Friday but were trading higher in Monday’s premarket.

Futures based on Wall Street’s “fear gauge” also had all-time record volume days on Dec. 31 and Jan. 1 last week, the CBOE said.

The VIX itself had its biggest weekly decline since 1990 when data was first recorded on the index, which measures one-month expectations of market volatility using S&P 500 options.

The VIX dropped below 14 on Friday for the first time since October. [Volatility ETFs Slide]

CBOE Volatility Index (Weekly Chart)

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vix-etfs

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