The S&P 500 Volatility Arbitrage Index seeks to model a common strategy that takes advantage of the difference between implied volatility and realized volatility. The index consists of receiving implied variance of the S&P 500 and paying realized variance of the S&P 500. Volatility arbitrage strategies are based on the tendency for implied volatility of an asset to be higher than realized volatility. Due to this, it historically has been a profitable strategy to receive implied volatility and pay realized volatility.

The index is part of the S&P Arbitrage Index Family. Other indices in the family are the S&P Currency Arbitrage Index and the S&P Long Only Merger Arbitrage Index.

Index Governance and Policy
This index is maintained by the S&P Index Committee, whose members include Standard & Poor's economists and index analysts. It follows a set of published guidelines and policies that provide the transparent methodologies used to maintain the index.

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