VXX

VXX is an exchange-traded note that tracks the performance of short-term options on the CBOE Volatility Index (VIX), known as the "fear gauge" of the stock market. It allows investors to gain exposure to market volatility—essentially, how much prices are expected to fluctuate—without directly trading derivatives. When market volatility rises due to uncertainty or fear, VXX tends to increase in value; when calm returns, VXX usually declines. It’s often used for hedging or speculating on market turbulence but can be complex and risky, especially over the long term, due to factors like contango and decay.