CBOE Market Volatility Index quote and summary, VIX History and News

It’s important to also know how many stocks are doing well versus those that are struggling. This shows the number of stocks on the NYSE at 52-week highs compared to those at 52-week lows. When there are many more highs than lows, that’s a bullish sign and signals Greed.

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When combined with fundamentals and other analytical tools, the Index can be a helpful way to assess market sentiment. Yes, UVXY offers 1.5x leveraged exposure to front-month VIX futures, making it more sensitive to daily volatility movements. The -1x Short VIX Futures ETF (SVIX -1.43%), offered by Volatility Shares, provides full -1x inverse exposure to the S&P 500 VIX Short-Term Futures Index, unlike ProShares’ more tempered 0.5x exposure. That means this ETF is designed to rise when VIX futures fall and decline when they spike with double the sensitivity. Instead of tracking front-month contracts, it follows the S&P 500 VIX Mid-Term Futures Index, which maintains exposure to VIX futures with a weighted average of five months to expiration. As of May 9, 2025, the ETF was holding a ladder of August, September, October, and November 2025 VIX contracts.

It’s crucial to hardware development process and lifecycle read the fine print because VIX ETFs are known for unpredictable behavior over time, sharp drawdowns, and complicated tax treatment. Before investing, make sure you understand what you’re really holding. CFE lists nine standard (monthly) VIX futures contracts, and six weekly expirations in VIX futures. As such, there is a wide variety of potential calendar spreading opportunities depending on expectations for implied volatility.

• Because of this, this ETF amplifies the benefits of contango and mean reversion.
• Please bear with us as we address this and restore your personalized lists.
• Bond yields – or the return you get on investing in a bond – dip when prices go up.
• These hedges are designed to limit the ETF’s worst-case losses, but they won’t fully protect against major volatility shocks.
• However, it also comes with significantly more downside risk, as any sharp rise in VIX futures or the spot VIX can lead to steep, rapid losses.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) can help you own tech stocks, but with the benefit of higher monthly income. Securities trading is offered to self-directed customers by Webull Financial LLC, a broker dealer registered with the Securities and Exchange Commission (SEC). To buy a VIX ETF, search for the ticker on your brokerage platform and make sure it’s an ETF, not an exchange-traded note (ETN).

• On sharp market selloffs, this VIX ETF can surge dramatically, making it a go-to for traders looking to profit from short-term fear.
• Please read the Risk Disclosure Statement and other relevant Futures Disclosures located at /fcm-disclosures prior to trading futures products.
• They are tools for disciplined, tactical traders, not casual investors.
• Market volatility, volume and system availability may delay account access and trade executions.

The Fear & Greed Index uses decreasing trading volume as a signal for Fear. Either way, if you’re using these ETFs, you need a clear system. That means knowing exactly when you’ll buy and sell, monitoring positions daily, having risk controls in place, and understanding that many of these funds issue K-1 tax forms that will complicate filing. They are tools for disciplined, tactical traders, not casual investors.

HomeVIX Volatility Products

The Fear & Greed Index is a compilation of seven different indicators that measure some aspect of stock market behavior. They are market momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility, and safe haven demand. The index tracks how much these individual indicators deviate from their averages compared to how much they normally diverge. The index gives each indicator equal weighting in calculating a score from 0 to 100, with 100 representing maximum greediness and 0 signaling maximum fear.

In 2018, back when it offered full inverse exposure (1x), the ETF lost more than 90% of its value in a single day. ProShares has since reduced the leverage to 0.5x to reduce the risk of a repeat event. The appeal here lies in how volatility tends to revert to the mean, and how contango erodes the value of VIX futures.

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Trades in your Webull Advisors account are executed by Webull Financial fortfs review LLC. Learn about stock volatility and which stock market sectors are the most volatile right now. To help mitigate this, the Volatility Shares ETF maintains a hedging overlay using out-of-the-money VIX call options. These hedges are designed to limit the ETF’s worst-case losses, but they won’t fully protect against major volatility shocks.

Should I invest in VIX ETFs?

This leverage amplifies both gains and losses, making the ETF highly reactive to volatility spikes, though still not perfectly correlated with the spot VIX. When the S&P 500 drops, volatility tends to spike, and VIX futures usually follow, giving this ProShares futures ETF strong, positive correlation to sharp market drawdowns. The ProShares VIX Short-Term Futures ETF (VIXY 1.84%) tracks the S&P 500 VIX Short-Term Futures Index, which doesn’t reflect the live VIX but instead holds front-month VIX futures contracts.

FAQs on the best VIX ETFs in 2025

These products are a niche where both the long and short sides come with the real risk of total wipeout. Go long too long, and contango, mean reversion, and high fees will slowly bleed your returns. Go short too long, and you may enjoy a winning streak until one bad volatility spike wipes out a big chunk of gains or more.

Leverage carries a high level of risk and is not suitable for all investors. Greater leverage creates greater losses in the event of adverse market movements. The catch is that when volatility spikes — especially suddenly — this inverse ETF can drop sharply.

The Fear & Greed Index uses junk bond demand as a signal for Greed. Options are contracts that give investors the right to buy or sell stocks, indexes or other financial securities at an agreed upon price and date. Puts are the option to sell while calls are the option to buy. When the ratio of puts to calls is rising, it is usually a sign investors are growing more nervous. The Fear & Greed Index uses a bearish options ratio as a signal for a complete guide to the futures market Fear. A $0.50 per contract fee applies for certain index options and a $0.10 per contract fee applies for oversized option orders.

As of May 9, 2025, for example, this included May and June VIX futures, which were rolled over periodically to maintain constant short-term volatility exposure. The Fear & Greed Index is used to gauge the mood of the market. Many investors are emotional and reactionary, and fear and greed sentiment indicators can alert investors to their own emotions and biases that can influence their decisions.

Volatility S&P 500 Index

Its decay is severe due to a combination of contango, mean reversion in volatility, and the compounding effect of daily resets, which causes long-term returns to become path dependent and strongly negative. Over long periods, index options have tended to price in slightly more uncertainty than the market ultimately realizes. Specifically, the expected volatility implied by SPX option prices tends to trade at a premium relative to subsequent realized volatility in the S&P 500 Index.

Market volatility, volume and system availability may delay account access and trade executions. All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment.

Because of this, this ETF amplifies the benefits of contango and mean reversion. In calm markets, it can steadily appreciate as volatility trends lower and VIX futures decay. However, it also comes with significantly more downside risk, as any sharp rise in VIX futures or the spot VIX can lead to steep, rapid losses.