VIX index

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The VelocityShares VIX Short Volatility Hedged ETN (VIIX) is an exchange-traded note (ETN) that aims to provide exposure to the volatility of the US stock market, as measured by the CBOE Volatility Index (VIX), while also attempting to hedge against losses from a decline in the VIX. The VIX, also known as the "fear index," is a popular measure of expected volatility in the S&P 500 index over the next 30-day period. VIIX aims to provide exposure to the VIX while mitigating the risk of losses from a decline in the VIX. However, like all ETNs, VIIX is subject to credit risk, which means that if the issuer defaults on its obligations, investors may not receive their full investment back. Additionally, VIIX is a complex financial instrument and may not be suitable for all investors. Before investing in VIIX or any other financial product, it is important to carefully consider your investment objectives, risk tolerance, and other factors to determine if it is suitable for your portfolio.

  The VIX is a key measure of the investment community's expectations for stock market volatility. If investors believe the stock market will rise, they will tend to purchase stocks and sell bonds. This trade results in a reduced demand for safe haven assets such as U.S. Treasury bonds, thus increased supply and decreasing prices. Lower bond prices result in higher yields (i.e., interest rates) for these securities, which diminishes the demand for stocks and increases the value of options written on them (e.g., VIX options). The opposite effect occurs when investors believe that stocks will decline.

VIX is the Chicago Board Options Exchange volatility index, or market volatility index. It is a stock market index used to measure the magnitude and expectation of market risk to stocks. It is calculated based on S&P 500 cash prices and is considered by many to be a better reflection of investor sentiment than other methods.

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