The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) fell 10.1% on Tuesday in response. However, the exchange traded note was up more than 3% as Dow futures pointed to a lower open in U.S. stocks.
Exchange traded products track VIX futures contracts, rather than the spot price.
VIX futures expiring this month fell 17% on Tuesday. The S&P 500 has fallen about 11% over the past few days as the markets absorb the gash to the U.S. debt rating, and while Europe continues to grapple with the sovereign debt. [Capitalizing on Market Volatility with VIX ETPs.]
iPath S&P 500 VIX Short-Term Futures ETN
VelocityShares Daily 2X VIX Short-Term ETN (NYSEArca: TVIX)
Chart source: StockCharts.com.
Tisha Guerrero contributed to this article.
