S&P 500 VIX (VIV20) Quote (2024)

FAQs

What does a VIX of 20 mean? ›

0-15: This can indicate a certain amount of optimism in the market as well as very low volatility. 15-25: This can indicate that there is a certain amount of volatility, but nothing extreme. 25-30: This can indicate that there is a certain amount of market turbulence and volatility is increasing.

In general, VIX values of greater than 30 are considered to signal heightened volatility from increased uncertainty, risk and investor fear. VIX values below 20 generally correspond to more stable, less stressful periods in the markets.

But unlike other indices, whose results indicate market performance, the VIX level communicates a different type of information: the 30-day implied volatility of the S&P 500. Implied volatility, in turn, indicates the expected range of the S&P 500, above and below its current level, over the next 30 days.

According to the rule of 16, if the VIX is trading at 16, then the SPX is estimated to see average daily moves up or down of 1% (because 16/16 = 1). If the VIX is at 24, the daily moves might be around 1.5%, and at 32, the rule of 16 says the SPX might see 2% daily moves.

We find that its accuracy hovers between 20% and 25%, depending on sampling period. An alternative framework, built on asymptotic distribution theory (AVE), predicts this volatility with an accuracy between 90% to 95%.

As a rule of thumb, VIX values greater than 30 are generally linked to large volatility resulting from increased uncertainty, risk, and investors' fear. VIX values below 20 generally correspond to stable, stress-free periods in the markets.

"If the VIX is high, it's time to buy" tells us that market participants are too bearish and implied volatility has reached capacity. This means the market will likely turn bullish and implied volatility will likely move back toward the mean.

The normal range of India VIX is between 15–35. A value close to or less than 15 suggests low volatility, whereas a value close to or higher than 35 suggests high volatility.

Is it better to invest in S&P 500 or Total market? ›

You can't go wrong with either the Vanguard Total Stock Market ETF or the Vanguard S&P 500 ETF. Both offer very low expense ratios and turnover rates, and the difference in their tracking errors is negligible. The overlap in their holdings ensures that you'll get very similar returns going forward.

VIX of 13-19: This range is considered to be normal, and volatility over the next 30 days when the VIX is at this level would be expected to be normal. VIX of 20 or higher: When the VIX gets to be above 20, you can expect volatility to be higher than normal over the next 30 days.

The primary way to trade the VIX is to buy exchange-traded funds (ETFs) and exchange-traded notes (ETNs) tied to the VIX itself. ETFs and ETNs related to the VIX include the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and the ProShares Short VIX Short-Term Futures ETF (SVXY).

Typically, when India VIX is close to the 10-12 range, it is considered low and a VIX level of 20 or above is considered high. A high VIX indicates a rise in fear and expectations of increased volatility ahead. If VIX goes down, option premiums become cheaper.

You can use the VIX as part of a trading strategy as it can give indications of whether the S&P 500, and stock market in general, is going to reverse from its current trend. As mentioned above, when the VIX hits highs, it's often seen as a time to buy the market, and when it makes lows, it's seen as a bullish signal.

VIX ETFs exist, but they actually track VIX futures indexes, which creates challenges. The Chicago Board Options Exchange Volatility Index (VIX index) attracts traders and investors because it often spikes way up when US equity markets plunge.

Summarizing the VIX–yield curve cycle in a single measure is beneficial for interpreting and monitoring recession signals. These cycle indicators are then used as predictors in a probit model for the probability of a recession within 6, 12, and 18 months.

Suppose, VIX value is 15. It means investors expect prices to fluctuate in the range of +15 and -15 in the next thirty days. Theoretically, VIX oscillates between 15 and 35. Any value around or below 15 represents low volatility against values higher than 35, which indicate high fluctuations in the market.

What does a VIX of 12 mean? ›

What Do the VIX Numbers Mean? A VIX level above 20 is typically considered “high.” A VIX below 12 is typically considered “low.” Anything in between 12 and 20 is considered “normal.”

That is what we are seeing in the current context with volatility scaling up to 32 levels. It shows that markets can move steeply in either direction, but the more likely direction is down, unless the VIX tapers. This is an important gauge of risk for market traders and also for long term investors.