VIX Volatility Index Annual History
Direct answer: The VIX (CBOE Volatility Index) measures the market's 30-day implied volatility expectation, often called the “fear gauge.” It averaged approximately 19-20 from 1990-2024. The highest single-day close was 82.69 (March 16, 2020, COVID panic). VIX below 15 indicates complacency; above 30 indicates fear; above 40 indicates extreme fear.
VIX annual average and peak (2007-2024)
| Year | Annual average | Annual peak | Key volatility event |
|---|---|---|---|
| 2007 | 17.5 | 31.1 | August subprime shock |
| 2008 | 32.7 | 80.86 | Financial crisis (October) |
| 2009 | 31.5 | 56.7 | Ongoing crisis fear |
| 2010 | 22.6 | 45.8 | May Flash Crash |
| 2011 | 24.2 | 48.0 | U.S. credit downgrade |
| 2012 | 17.8 | 26.7 | Euro debt concerns |
| 2013 | 14.2 | 21.9 | Taper tantrum |
| 2014 | 14.2 | 26.3 | Ebola/oil spike |
| 2015 | 16.7 | 40.7 | China devaluation (August) |
| 2016 | 15.8 | 28.1 | Brexit shock |
| 2017 | 11.1 | 16.0 | Historic low volatility year |
| 2018 | 16.6 | 50.3 | Feb vol spike; Dec selloff |
| 2019 | 15.4 | 24.6 | Trade war fears |
| 2020 | 29.3 | 82.69 | COVID panic (March 16) |
| 2021 | 19.7 | 37.2 | Meme stock volatility |
| 2022 | 25.6 | 38.9 | Rate shock bear market |
| 2023 | 17.0 | 26.5 | Banking stress (SVB) |
| 2024 | 15.5 | 65.7 | August flash crash |
Source: CBOE: VIX Index. Last verified: September 2026.
Frequently asked questions
How is the VIX calculated?
The VIX measures the implied volatility of S&P 500 options (SPX options with approximately 30 days to expiration, using a range of puts and calls). Higher option premiums imply that traders expect larger price swings, which the VIX captures as an annualized percentage. A VIX of 20 means the market implies the S&P 500 will move approximately 20% over the next year, or about 1.4% per day (20% / sqrt(252 trading days)). The VIX represents the price of uncertainty, not direction.
Can you invest in VIX directly?
No, VIX is not directly investable. VIX-linked products (VIX futures, VXX ETF, UVXY leveraged ETF) track VIX futures, not the spot VIX level. Due to a persistent term structure effect (VIX futures are typically in contango, where longer-dated futures cost more than shorter-dated ones), VIX ETFs like VXX suffer severe roll decay over time, losing significant value even when volatility remains elevated. VXX has historically lost 95%+ of its value over multi-year periods. Short-term trades (days to weeks) in VIX products can work; long-term holding is highly destructive.
What is the relationship between VIX and stock returns?
VIX and stock returns have a strong negative contemporaneous correlation: when stocks fall, VIX spikes (options buyers seek protection). When stocks rally, VIX typically falls. Historically, extreme VIX spikes (above 35-40) have been excellent contrarian buying opportunities: buying the S&P 500 when VIX is above 40 has historically produced above-average forward 12-month returns. The VIX reflects current fear, not future direction. However, extreme fear episodes can persist (2008-2009 saw elevated VIX for 18+ months).