The Cboe Volatility Index (VIX) is a real-time market index that measures the market’s expectation of 30-day volatility, as implied by S&P 500 index options. Often referred to as the “fear gauge,” a higher VIX value indicates increased market uncertainty and potential for larger price swings, while a lower value suggests a more stable market environment.
As of March 10, 2025, the VIX surged to 27.1, significantly above its long-term average of 19.5. This increase reflects heightened investor anxiety amid recent market sell-offs, driven by concerns over economic slowdown and trade policy uncertainties.
It’s important to note that the VIX itself is not a tradable asset. However, investors can gain exposure to volatility through various financial instruments, such as VIX futures, options, and exchange-traded products (ETPs) that track VIX-related indices. These instruments allow investors to hedge against market volatility or speculate on future changes in market volatility.