Understanding the VIX: Why the VIXY ETF Might Not Tell the Whole Story of Market Risk
The VIX index is a crucial tool for measuring the implied volatility of S&P 500 stocks. It reflects market sentiment and is essential for traders navigating periods of volatility. Notably, the VIX has seen significant spikes during major market crises, such as those in 2008, 2020, and 2024. These peaks underline a prevailing sense of fear when corrections occur. Investors should understand that movements in the VIX and the VIXY ETF may not fully capture the complexities of market risk. A comprehensive analysis is needed to make informed trading decisions in volatile environments.
Newsletter
Get Every Weekly Update & Insights
[mc4wp_form id=]