Ask the Institute

DATE: June 03, 2013


Can you explain the significance of the CBOE Volatility Index®?

The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, VIX has been considered by many to be the world's premier barometer of investor sentiment and market volatility. Currently, VIX is at one of its lowest levels since the fiscal crisis in 2008, holding at approximately 13 when it's historically known to average just over 20. To learn more about VIX, view this week's segment of "Ask the Institute."