VIX, Volatility ETFs Reveal an Overly Complacent Market

However, markets remain complacent with no clear trigger point ahead to cause a spike in volatility.

The market “doesn’t see an event on the horizon that could cause the VIX (or fear) to spike,” John Canally, chief economic strategist at LPL Financial, told USA Today.

Hedge funds have pushed net short positions on VIX futures to the most since 2013, betting on higher equity prices, Bloomberg reports.

SEE MORE: VIX, Bearish S&P 500 ETFs to Hedge Uncertainty

VXX has also seen over $1 billion in net outflows over the past week, according to, as investors turned more bullish on equities.

“VIX positioning went from incredibly bullish back in February, when the world was coming to an end, to shorts at all time lows,” Michael Purves, chief global strategist at Weeden & Co LP, told Bloomberg.

For more information on the CBOE Volatility Index, visit our VIX category.

ProShares VIX Short-Term Futures ETF