Nasdaq-100 Volatility Index
What is the Nasdaq-100 Volatility Index?
An index which measures investors' expectations of volatility in the Nasdaq 100 stock market. Operated by the Chicago Board Options Exchange, it predicts volatility over the next 30 days by analysing the prices of near-term Nasdaq 100 options.
Where have you heard about the Nasdaq-100 Volatility Index?
It often hits the headlines during periods of economic uncertainty, helping people to broadly gauge the sentiment of investors. A rising index points to stronger expectations of volatility in the Nasdaq 100.
What you need to know about the Nasdaq-100 Volatility Index.
The Nasdaq 100 includes the largest 100 non-financial securities listed on the wider Nasdaq market. Its volatility index reached record heights during the global financial crisis of 2008, with investors particularly concerned about the future direction of the Nasdaq 100.
The Nasdaq-100 Volatility Index works in a similar way to the VIX, a separate index which is used to forecast short-term volatility in the S&P 500. It's often referred to as a 'fear gauge', since it essentially tracks the nervousness of investors.