NEW YORK, February 8 (FinanceEnquiry.com) - The year 2012 has recorded a major downfall in the Exchange-Traded Funds (ETFs) that track the CBOE Volatility Index futures, on easing Eurozone debt fears and signals that the economy will sidestep a double-dip recession. The drop in these funds shows a much lower volatility, as stocks continue to grind higher after the wild gyrations of last year. Last week, the iPath S&P 500 VIX Short-Term Futures ETN (VXX), which keeps a track of futures contracts based on the CBOE Volatility Index, lost approximately 5.3 percent.

The ETN reported positive returns in 2011, as volatility captured the markets due to the Eurozone debt crisis and uncertainty of the U.S. economy, however, this year, VXX has lost approximately 32 percent. The iPath S&P 500 VIX Short-Term Futures ETN was not among those major indices that posted profits last week, such as the Dow Jones Industrial Average that gained 1.2 percent, the NASDAQ that added 1.6 percent and the Standard and Poor 500 that returned 1.5 percent.