Investors buy downside protection as VIX hits five-year low

clock • 2 min read

Global asset allocators are urging investors to look past the VIX index's fall to a five-year low last week, and shield assets against a further bout of volatility in the coming months.

The VIX, commonly dubbed the ‘fear index’ for its inverse relationship to the S&P 500, has fallen 71% over the past year as investors adopt a more sanguine attitude towards the eurozone crisis. Over the past two months, global equity markets across the board have posted solid gains, with contagion fears in Europe easing in response to proposed bond-buying by the European Central Bank. ECB President Mario Draghi vowed last month to do ‘whatever it takes’ to save the euro. However, global strategists have warned the pattern of the VIX indicates the summer rally is unsustainable and inve...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

7IM's Ben Kumar: When behavioural biases are not all they seem

7IM's Ben Kumar: When behavioural biases are not all they seem

Investment identity more important

Ben Kumar
clock 02 July 2025 • 3 min read
Aegon AM launches UK-domiciled global income fund

Aegon AM launches UK-domiciled global income fund

In response to client demand

clock 27 June 2025 • 1 min read
CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

Focus on quality

Charlotte Ryland and Joe Hawkes
clock 26 June 2025 • 4 min read
Trustpilot