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The VSTOXX® was introduced on April 20, 2005, during a calm and positive time for equity markets. The launch was a significant moment for European investors, offering a transparent measure of implied volatility that could be used to inform investment decisions.
Not only was the VSTOXX quickly adopted as the region’s undisputed gauge of market stress, but it also helped broaden access to volatility as an investable asset class in Europe and facilitated multiple volatility trading strategies. In 2024, over 21 million futures and options on VSTOXX exchanged hands on Eurex.
The VSTOXX indices track real-time options prices on the EURO STOXX 50® benchmark, thus reflecting market expectations of future volatility in Eurozone stocks. Although the main VSTOXX 30 days index (STOXX ticker: V2TX) is the most popular – and is usually referred to as "the VSTOXX" – eleven other indices are calculated, covering fixed maturities up to 360 days in increments of 30 days.
Their function as market sentiment barometers and hedging instruments was tested once again this month, when concerns about disruptions to global trade and their effect on US economic growth sent the main VSTOXX to a three-year high. By contrast, the EURO STOXX 50 dropped 8.8% in the first nine sessions in April, headed for its worst month since June 2022.
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