VIX ETPs Pop as Market Volatility Rears Its Ugly Head

The Cboe Volatility Index and VIX-related exchange traded products jumped as Thursday’s steep declines continued for another day due to the ongoing fall-off in U.S. government bonds triggered by upbeat data on the U.S. economy and easing trade concerns.

On Friday, the iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) increased 3.7%, ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) jumped 3.9% and the leveraged ProShares Ultra VIX Short-Term Futures (NYSEArca: UVXY), which provides the 2x or 200% daily performance of the S&P 500 VIX Short-Term Futures Index, advanced 6.0%. The VIX-related ETPs also tested their short-term resistance at the 50-day simple moving average.

Meanwhile, the CBOE Volatility Index surged 11.5% to 15.9 and briefly touched its highest level since late June.

The volatility index spiked as U.S. stocks retreated Friday, dragged down by rising yields on Treasuries after employment data showed job growth, though weaker than expected, still revealed the U.S. economy is still strengthening.