CBOE Volatility Index: VIX
VIXCLS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
17.85
Year-over-Year Change
8.78%
Date Range
10/6/2021 - 8/5/2025
Summary
The CBOE Volatility Index (VIX) measures the stock market's expected volatility over the next 30 days, serving as a key indicator of market sentiment and investor uncertainty. It is often referred to as the 'fear index' because it reflects potential market turbulence and risk perception.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The VIX represents the implied volatility of S&P 500 index options, providing a forward-looking measure of market expectations about future price fluctuations. Economists and traders use this index to gauge market sentiment, with higher values indicating greater expected market uncertainty and potential risk.
Methodology
The VIX is calculated using a complex options pricing model that estimates the expected volatility implied by S&P 500 index option prices.
Historical Context
Financial analysts, policymakers, and investors use the VIX as a critical tool for understanding market risk, making investment decisions, and assessing potential economic turbulence.
Key Facts
- A VIX value above 20 typically indicates higher market uncertainty
- The index is calculated in real-time during market trading hours
- Extreme VIX values can signal potential market corrections or economic stress
FAQs
Q: What does a high VIX number mean?
A: A high VIX number indicates increased market uncertainty and potential volatility, suggesting investors expect significant price fluctuations in the near future.
Q: How often is the VIX updated?
A: The VIX is calculated and updated in real-time during market trading hours, providing continuous insights into market sentiment.
Q: Can the VIX predict market crashes?
A: While the VIX can signal increased market risk, it is not a definitive predictor of market crashes but rather an indicator of potential market uncertainty.
Q: How do professional investors use the VIX?
A: Investors use the VIX to assess market risk, potentially adjust investment strategies, and make hedging decisions during periods of expected volatility.
Q: What are the limitations of the VIX?
A: The VIX is a forward-looking measure based on options pricing and does not guarantee future market performance, representing market expectations rather than certainty.
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Citation
U.S. Federal Reserve, CBOE Volatility Index: VIX [VIXCLS], retrieved from FRED.
Last Checked: 8/1/2025