ETF Trends
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 (NYSEArca: VXX) and VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: 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)

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.