Vix futures chart the updated VIX futures chart

The updated VIX futures chart illustrates consistency in spot levels under 16, yet institutional flows into upside VIX calls show a tactical approach to guarding against rate shock events. Changes to implied volatility will have a big impact on this trade and the interim breakeven prices, so it’s important to have a solid understanding of volatility before placing a trade like this. UVIX offers daily 2x leveraged exposure to short-term VIX futures, designed to capture the implied volatility of the S&P 500, in a commodity pool wrapper. As a geared product, UVIX is designed as a short-term trading tool and not a long-term investment vehicle. Returns over holding periods greater than one day can be, and often are, significantly different from 2x. Like its peer products, UVIX does not deliver leveraged returns on the VIX index itself, but on front- and second-month futures contracts that are rolled daily. Structured as a commodity pool, investors will get K-1 at tax time but avoid the counterparty risk of an exchange-traded note. In the VIX futures chart update, the contango structure narrowed, with January contracts now just 0.4 points above spot levels. This reflects tighter risk premiums as equity markets consolidate after recent tech-led rallies.