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Index Insights is a monthly look at how various indices performed in the prior month and the impact of current events on markets and indices.
Highlights
In the first five months of 2023 the S&P 500® Total Return Index rose 9.6%, a strong increase. In comparison, however, some of Cboe’s indices that track the values of hypothetical options-based or futures-based portfolios had greater gains during the same period.
Keeping Score
The table below shows the performance and percentage price change for 30 indices, as of May 31, 2023.
Source: Cboe Global Markets
(All the above indices, except the four volatility indices, are total return (pre-tax) indices. Past performance is not predictive of future returns.)
Interest in Russell Indices During the June Russell Reconstitution
Every June, the annual Russell Reconstitution drives heightened interest in key FTSE Russell U.S. indices as The Russell 1000, Russell 2000 and Russell 3000 Indices are reconstituted to ensure they accurately represent the market performance by each market segment and subsequent investment styles—growth, value, defensive and dynamic.
The chart below shows the performance of four Cboe Russell indices over the past 17 years. All four indices show the performance of hypothetical strategies that sell Russell 2000® (RUT) index options, and all four indices have lower volatility than the Russell 2000 Index.
Even though the BXRH and BXRD indices collected less gross premium than the BXR Index, the BXRH and BXRD indices had greater returns than the BXR Index because the BXRH and BXRD both participated in some of the upside moves of the Russell 2000 Index.
Source: Cboe Global Markets
(Past performance is not predictive of future returns.)
To learn more about managing small-cap exposure, join us for our upcoming webinar, Russell Reconstitution and Options for Alpha Generation, on June 7. Chandler Nichols, Global X, Catherine Yoshimoto, FTSE Russell, and Rick Rosenthal, Cboe, will discuss the annual reconstitution and the opportunities it presents to generate returns.
Gauges for Investor Sentiment – VIX1D Index and VIX Index
The Cboe 1-Day Volatility IndexSM (VIX1DSM), seeks to measure the expected volatility of the S&P 500® Index over the current trading day (today).
In May 2023, the average daily closing value of the VIX1D Index was 14.9, compared to an average daily closing value of 17.6 for the VIX Index. These values were lower than the longer-term averages for both indices, despite some concerns about U.S. debt ceiling negotiations.
Source: Cboe Global Markets
The average daily closing values were 21.8 for VIX1D Index and 23.2 for VIX Index.
Read more about the VIX1D Index and how it compares to Cboe’s other volatility indices.
More Resources
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