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What Is the VIX Index? Chart and CBOE Volatility Index Explained
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What Is the VIX Index? Chart and CBOE Volatility Index Explained
The Cboe Volatility Index, or VIX, is a benchmark that measures the expected future volatility of the S&P 500 index.
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What is the VIX?VIX is the ticker symbol for the Cboe Volatility Index, which measures how much volatility the S&P 500 index may experience over the next 30 days
VIX is the ticker symbol for the Cboe Volatility Index, which measures how much volatility the S&P 500 index may experience over the next 30 days Chicago Board Options Exchange. VIX Index. Accessed Feb 2, 2026. . To calculate this expected price movement, the VIX index measures the average weighted prices of options trading for the S&P 500.Sometimes referred to as the “fear index,” the VIX reflects investor uncertainty and expected future price fluctuations across the broader financial market. The word “volatility” is often associated with something bad from an investor standpoint, but the VIX is simply measuring a range of how much price movement investors should anticipate — which could be up or down.
Sometimes referred to as the “fear index,” the VIX reflects investor uncertainty and expected future price fluctuations across the broader financial market. The word “volatility” is often associated with something bad from an investor standpoint, but the VIX is simply measuring a range of how much price movement investors should anticipate — which could be up or down.The VIX index was introduced in 1993 by the Chicago Board Options Exchange, which has since been abbreviated to Cboe.
The VIX index was introduced in 1993 by the Chicago Board Options Exchange, which has since been abbreviated to Cboe.Increases in the VIX often accompany market downturns. Here’s a snapshot of how the VIX has changed.
Increases in the VIX often accompany market downturns. Here’s a snapshot of how the VIX has changed.Brokerage firms
Brokerage firms
Brokerage firmson Charles Schwab's website
on E*TRADE's website
on Vanguard's website
on Fidelity's website
The basics of VIX
The basics of VIXThe VIX index was introduced by the Chicago Board Options Exchange, or Cboe, as a way for investors to measure future volatility for the S&P 500 index.
The VIX index was introduced by the Chicago Board Options Exchange, or Cboe, as a way for investors to measure future volatility for the S&P 500 index.To measure future volatility, the VIX uses the weighted prices of the S&P 500 index (SPX) options trading.
To measure future volatility, the VIX uses the weighted prices of the S&P 500 index (SPX) options trading.The prices used to calculate the VIX are midpoints of real-time S&P 500 option bid/ask price quotations, according to Cboe.
The prices used to calculate the VIX are midpoints of real-time S&P 500 option bid/ask price quotations, according to Cboe.When investor uncertainty increases, the VIX increases.
When investor uncertainty increases, the VIX increases.» MORE: How to invest $100,000
» MORE: » MORE: » MORE: How to invest $100,000How is VIX calculated?
How is VIX calculated?The formula to calculate the VIX is complex, and the VIX is updated live during trading hours every 15 seconds.
The formula to calculate the VIX is complex, and the VIX is updated live during trading hours every 15 seconds.The VIX index measures expected volatility for the S&P 500. The S&P 500 index is composed of 500 of the largest publicly traded companies in the U.S. Because the S&P 500 includes so many large companies across several different market sectors, it is generally viewed as a good indication of how the U.S. stock market is performing overall.
The VIX index measures expected volatility for the S&P 500. The S&P 500 index is composed of 500 of the largest publicly traded companies in the U.S. Because the S&P 500 includes so many large companies across several different market sectors, it is generally viewed as a good indication of how the U.S. stock market is performing overall.When investors trade options, they are essentially placing bets on where they think the price of a specific security will go. In many cases, institutional investors use options to hedge their current positions. So, if these institutions expect a market upswing or downswing, they may hedge against that volatility by placing options trades.
When investors trade options , they are essentially placing bets on where they think the price of a specific security will go. In many cases, institutional investors use options to hedge their current positions. So, if these institutions expect a market upswing or downswing, they may hedge against that volatility by placing options trades.If many institutional traders anticipate the same thing, there is usually a spike in trading for S&P 500 options.
If many institutional traders anticipate the same thing, there is usually a spike in trading for S&P 500 options.The VIX index thus uses the bid/ask prices of S&P 500 index options to gauge investor sentiment for the larger financial market.
The VIX index thus uses the bid/ask prices of S&P 500 index options to gauge investor sentiment for the larger financial market.VIX and volatility
VIX and volatilityIf the range of strike prices for puts and calls on the S&P 500 increases, this usually indicates that the investors placing the options trades are predicting some price movement up or down.
If the range of strike prices for puts and calls on the S&P 500 increases, this usually indicates that the investors placing the options trades are predicting some price movement up or down.Typically, the performance of the VIX index and the S&P 500 are inversely related to each other. In other words, when the VIX rises, the S&P 500 is usually declining.
Typically, the performance of the VIX index and the S&P 500 are inversely related to each other. In other words, when the VIX rises, the S&P 500 is usually declining.Understanding how the VIX index is calculated can help investors gauge market sentiment, which can guide decisions on when to buy or sell. As a general rule, when the VIX is:
Understanding how the VIX index is calculated can help investors gauge market sentiment, which can guide decisions on when to buy or sell. As a general rule, when the VIX is:0-15, this usually indicates optimism in the market and very low volatility.
0-15, this usually indicates optimism in the market and very low volatility.15-25, there is typically a moderate amount of volatility, but nothing extreme. A VIX in this range are indicative of a normal market environment.
15-25, there is typically a moderate amount of volatility, but nothing extreme. A VIX in this range are indicative of a normal market environment.25-30 indicates some market turbulence; volatility is increasing and investor confidence may be waning.
25-30 indicates some market turbulence; volatility is increasing and investor confidence may be waning.30 and over typically indicates some anticipation of extreme swings in the market.
30 and over typically indicates some anticipation of extreme swings in the market. S&P Dow Jones Indices. What Is Vix and What Does it Measure?. Accessed Feb 2, 2026.Can I buy VIX?
Can I buy VIX?Investors cannot buy the VIX directly. It's an index.
Investors cannot buy the VIX directly. It's an index.However, there are a wide array of exchange-traded funds, or ETFs, and exchange-traded notes — or ETNs — tied to the VIX. Given that the performance of the VIX is negatively correlated to the S&P 500, some investors buy ETFs or ETNs linked to the VIX as a way to diversify and hedge positions in their portfolio. It’s important to note that the VIX itself can be exceedingly volatile.
However, there are a wide array of exchange-traded funds , or ETFs, and exchange-traded notes — or ETNs — tied to the VIX. Given that the performance of the VIX is negatively correlated to the S&P 500, some investors buy ETFs or ETNs linked to the VIX as a way to diversify and hedge positions in their portfolio. It’s important to note that the VIX itself can be exceedingly volatile.Before purchasing a security tied to the VIX, understand all of your options so that you can make educated choices. If you’re interested in investing in a VIX ETF/ETN, speak with a financial professional first to make sure your investment strategy fits your needs.
Before purchasing a security tied to the VIX, understand all of your options so that you can make educated choices. If you’re interested in investing in a VIX ETF/ETN, speak with a financial professional first to make sure your investment strategy fits your needs.» MORE: How to hire a wealth manager and what it costs
» MORE: » MORE: » MORE: How to hire a wealth manager and what it costsHelpful resources
Helpful resources Best Financial Advisors 3 Ways to Search for a Financial Advisor Near You How to Choose a Financial Advisor in 5 Steps 3 Best Wealth Management Services More like this Investment Basics Investing How Much Does a Financial Advisor Cost? Most financial advisors charge based on how much money they manage for you. Fees are typically 1% a year but can be lower. 2 By Andrea Coombes, Taryn Phaneuf Do You Need a Financial Advisor? 7 Ways to Tell You may need a financial advisor if you're facing big life changes, don't have financial goals, have complex compensation, high tax bills or for other reasons. Taryn Phaneuf How to Find Cheap or Free Financial Advice Quality financial advice is more accessible than ever — and much of it is free or inexpensive. Here's how to get it. Anna-Louise Jackson 3 Steps to Prepare for Your First Financial Advisor Meeting Here's what think about and bring to your first meeting with a financial advisor. June Sham