Backtested and hypothetical results, shown for educational purposes only — not investment advice. Past performance does not indicate future results.

Buying on VIX Levels

hold for
History 5y 10y 20y All
Buckets Bands 4 6 8 10
15.84 VIX ·14.9–16.9

No fear signal

2,514 days since 2016 · 2026-09-11

9.1–12.8 Calm
12.8–14.9 Calm
14.9–16.9 Normal VIX 15.84
16.9–19.5 Normal
19.5–24.1 Elevated
24.1–82.7 Panic
17%17%17%17%17%17%

Since 2016, days at this level gave +1.4% over 2 months (73% up) — no edge vs the +2.6% average. → Nothing to do — wait for a spike.

Buy S&P 500 while VIX is in the 14.9–16.9 band, average return over the…
next 1 month
+0.8%
median +1.6% · 72% up · -0.5pp vs avg · n=407
next 2 months
+1.4%
median +2.8% · 73% up · -1.3pp vs avg · n=397
next 3 months
+2.7%
median +4.0% · 77% up · -1.2pp vs avg · n=385
Return after a day in each VIX band, over the hold period picked above — bars are the mean, tick marks the median. Dashed: all-days average. Ringed: now.
Each day's VIX vs the return over the following weeks. Line: today. Noisy — the edge is in the right tail.
Full VIX history; shaded above 25. Dark panel = outside the 10-year window.
How to read this  ▾

The VIX is the market's 30-day volatility estimate off S&P 500 options — it rises when traders are afraid. Each day since 2016 is sorted by its VIX close; we show what S&P 500 did over the next 1–3 months, % positive, and the gap vs the all-days average.

The effect is one-sided: extreme fear (VIX 25+) has preceded strong returns; a mildly elevated VIX (20–25) has been the weakest zone. Small overlapping samples — not a forecast.

End-of-day data, refreshed nightly. Forward returns use adjusted closes over 21 / 42 / 63 trading days; overlapping windows, so samples aren't independent. Not a forecast, not investment advice.