Weekend Review – Volatility Indexes and ETPs – 10/3 – 10/7

The VXST – VIX – VXV – VXMT changed a little last week with the wings (VXST & VXMT) losing a little value and the middle section (VIX & VXV) rising slightly.  I find the drop on Friday in VXST a little perplexing as I was hearing concern with respect to a potential market reaction to the Sunday night debate.  People may have been thinking it, but VXST was not reflecting short term concerns.

vxst-vix-vxv-vxmt-chart

VIX was higher last week, but all the standard futures contracts lost value which influenced the performance of the exchange traded products.  VIX gaining value and VXX losing value last week is a good teaching moment for those who are still not aware that VIX is VXX are not the same thing.

vxx-table

We have less than a quarter of a year remaining until we start writing 2017 on checks.  I think I’m safe is saying that SVXY will be the winner on the chart below this year.  Even if SVXY loses 50% one week, it would take a large multiple of that for VXX or UVXY to catch up this year.

vxx-svxy-uvxy

In the broad volatility space, British Pound volatility was the lead gainer last week rising over 27% as the reality of Brexit happening working into the markets.  Three of the other top five movers last week were related to the precious metal markets.  VXSLV, VXGDX, and GVZ were all much higher.  Since we are starting to approach third quarter earnings season volatility on GOOGL, IBM, AAPL, and AMZN were all near the top as well.

vol-indexes