The VXX: 2010's Only Sane Investment Option

Fear is what drives the market these days, that and headlines.  Its why the iPath S&P 500 VIX Short Term Futures ETN (NYSE:VXX) is the only sane and "safe" investment these days.

iPath S&P 500 VIX Short Term Futures ETN (NYSE:VXX) provides exposure to equity market volatility through CBOE "Volatility Index" futures. Investors are busy trying to figure out where the market is headed and taking positions both long and short, while the underlying fear is we are headed for a correction, the VXX makes perfect sense.

A direct investment in VIX (commonly referred to as spot VIX) is not possible. The S&P 500 VIX Short-Term Futures ETN (NYSE:VXX) holds VIX futures contracts, which could involve roll costs and exhibit different risk and return characteristics.

TODAY'S MOVE
BOSTON (MarketWatch) -- The CBOE Volatility Index (VIX) surged to a session gain of more than 60% Thursday afternoon as stocks collapsed on worries Greece's debt woes could spark a wider credit contagion. Known as the market's fear gauge or VIX, the benchmark tracks implied market volatility using options contracts based on the S&P 500 Index.

The Dow Jones Industrial Average was down nearly 1,000 points at one point Thursday afternoon before bouncing back, and was off about 500 points, or nearly 5%, in recent action. The iPath S&P 500 VIX Short Term Futures ETN  (VXX) added 16%.