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.
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