VIX ETFs UP Post-Market Volatility Swing

ETPs tracking the CBOE Volatility Index futures have risen due to the recent spike in market turmoil.

ETPs tracking the CBOE Volatility Index futures have risen due to the recent spike in market turmoil, ETF Trends reports. The $1.2 billion iPath S&P 500 VIX Short-Term Futures ETN, the largest volatility-linked product, fell 5% on August 23 but has gained overall this summer. The volatility index (VIX), which measures implied market volatility based on S&P 500 options, fell below 40 on the date after nearly touching 50 earlier this month. The average for the VIX since October 2008 is 28. As the VIX has a standard deviation of 13, it is not unusually high until around 54, according to Nicholas Colas, chief market strategist at ConvergEx Group.

Click here for the story from ETF Trends.