The VS TR 2x Long VIX Futures ETF (UVIX) is experiencing a notable surge, driven by heightened volatility in the U.S. stock markets. The U.S. Volatility Index (USVIX) increased by 2.77% to 18.72 on December 30, reflecting investor concerns as U.S. stocks fell sharply ahead of the year's end. This increase in volatility is attributed to a combination of factors, including a steeper-than-expected decline in the Chicago PMI and a significant drop in U.S. pending home sales, which have raised fears of an economic slowdown. Additionally, the U.S. 10-year yield fell by 10 basis points, further contributing to market uncertainty and volatility.
The underlying VVIX index, which measures the expected volatility of the VIX, rose by 13.17% to 111.82, indicating increased demand for volatility protection. This surge in volatility has propelled the UVIX ETF to a current price of $3.55, marking an 11.29% increase from its previous close.