Emerging Market Volatility in 2014

Despite the Brazilian market experiencing excessive volatility in 2014, the CBOE Emerging Markets ETF Volatility Index (VXEEM – 22.26) was at relatively low levels. The iShares Emerging Markets ETF (EEM – 39.29) ended 2014 down a little over 3% which was better than many market observers were expecting. Also, note on the chart below that VXEEM ended the year about where it started the year, which stands out relative to many other volatility indexes which finished the year higher than where things started out.

EEM VXEEM

Relative to recent history VXEEM had a lower average than any of the previous years. This would probably be the biggest surprise of all the volatility markets with listed derivative trading last year. Especially when 2012 was a very positive year for EEM performance.

VXEEM Table For more insight and thoughts about 2014 join me for a 2014 volatility wrap up webcast this coming Monday (1/5/15) at noon Chicago time – register at www.cboe.com/webcasts