Learn · Market risk
What Is the VIX?
The Cboe Volatility Index, known as the VIX, measures how much the stock market expects the S&P 500 to swing over the next 30 days. It's often called Wall Street's "fear gauge".
How the VIX works
The VIX is calculated from the prices of S&P 500 options. When investors are willing to pay more for options, often to protect against a drop, the VIX rises. It reflects expected volatility, not the direction the market will move.
How to read VIX levels
As a rough guide, readings below about 15 suggest calm markets, readings around 20 are close to the long-run average, and readings above 30 signal fear and big expected swings. During crises the VIX has spiked far higher, reaching about 80 in 2008 and again in 2020.
The VIX tends to rise when stocks fall sharply, which is why it's used as a measure of market stress.
VIX Volatility Index over time
VIX Volatility Index
Expected 30-day S&P 500 volatility, daily close
Common questions
Who publishes the VIX?
The VIX is published by Cboe Global Markets and calculated in real time during the trading day.
Is a high VIX bad?
A high VIX means investors expect large price swings, usually during periods of fear or market declines. It does not predict which way stocks will move.
What is a normal VIX level?
Over the long run, the VIX has averaged around 20. Readings well below that indicate calm markets; readings above 30 indicate elevated fear.
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Source: Cboe Global Markets via FRED, Federal Reserve Bank of St. Louis. For information only, not investment advice.