Volatility-based ETFs and ETNs have come down over the past month, with the S&P VIX Index (VIX) easing to its lowest level in three months.
The VIX has now concluded lower in 25 of its last 30 trading sessions. On Wednesday, it reached 20.8, a point not seen since Aug. 19.
The slide has added pressure to shorter-term volatility funds such as the iPath Series B S&P 500 VIX Short Term Futures ETN (BATS:VXX) and the ProShares VIX Short-Term Futures ETF (BATS:VIXY). Over the past 30 trading sessions, VXX has dropped 29.8% and VIXY has dipped 29.6%.
Other volatility ETFs and ETNs that have seen a decline include the iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ), which has fallen 14.8% over the last 30 trading sessions. Meanwhile, the ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY) has come down 41.8%, and the 2x Long VIX Futures ETF (UVIX) has plunged 52.2%.
While the VIX has steadily declined lately, it is still higher by 20.8% in 2022 as it started the trading year with a reading of 17.6.
In broader financial news, the Nasdaq and S&P 500 ticked higher on Wednesday, while the Dow reversed course in midday trading, as Wall Street waited for the release of the minutes of the Federal Reserve’s November meeting.