markets

How'd Your Week Go? Low-Vol Blowup, Stocks Jitters, in 5 Charts

  • The S&P finished a record streak of days without a 5% drop
  • The world’s largest ETF sees a $25 billion outflow in 6 days

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It was five days of high anxiety for U.S. equity investors. Here are five charts that show how bad it got.

Correction Mode

The last time the S&P 500 Index had a 5 percent drop was when the U.K. voted to leave the European Union in summer 2016. It was a procession of sunny days since then -- a record 588 days without a 5 percent fall. The biggest selloff in almost seven years on Monday interrupted that streak of calm.

Big Vol is Back

A plunge in the S&P 500 of as much as 4.5 percent on Monday pushed the Cboe Volatility Index up by 116 percent, the most ever.

Volatility Blowup

As stocks went wild, two exchange-traded funds that bet on lower volatility, known under tickers XIV and SVXY, fell about 95 percent. Credit Suisse Group AG, the backer of the VelocityShares Daily Inverse VIX Short-Term ETN, said it will buy the product back.

Record Hedging

Tumbling equities triggered unprecedented hedging. Total call and put volume on the Cboe Volatility Index reached a record 4.3 million on Friday and 4.2 million on Tuesday.

Leaving SPY

The world’s largest exchange-traded fund, the SPDR S&P 500 ETF Trust, saw the biggest six-day outflow ever. Traders have yanked $25.3 billion from the product since last Thursday as the fund lost 7 percent in the span.

— With assistance by Lu Wang, and Sarah Ponczek

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