Despite a stable stock market and CBOE Volatility Index that reached a record intraday low in July, investor demand for volatility funds remains strong, according to Morningstar data that shows a $1.49-billion net total of in-flows into volatility-focused mutual funds, ETFs and notes in the first seven months of 2017. The demand for downside protection may be fueled by investors' uncertainty regarding the potential impact of looming interest rate hikes on stock prices, The Wall Street Journal reports.
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