* Clinton has 90 pct chance of defeating Trump - poll
* VIX reverses course to trade lower
* Hertz slumps more than 50 pct on forecast cut
* Indexes up: Dow 0.14 pct, S&P 0.06 pct, Nasdaq 0.02 pct (Adds details, comments, updates prices)
By Yashaswini Swamynathan and Tanya Agrawal
Nov 8 (Reuters) - Wall Street was little changed in light trading on Tuesday morning as investors treaded cautiously while awaiting the outcome of the U.S. presidential election, with the odds tilting towards Democrat nominee Hillary Clinton.
Clinton, favored by investors as they see her lending greater clarity and stability to the markets, has a 90 percent chance of defeating Republican nominee Donald Trump, according to the final Reuters/Ipsos States of the Nation poll released on Monday.
Trump's stance on foreign policy, trade and immigration is more uncertain.
Clinton was on track to win 303 votes in the Electoral College to Trump's 235, clearing the 270 needed for victory. The former secretary of state also leads Trump by about 45 percent to 42 percent in the popular vote.
"My expectation for today is that the market will probably trade mostly sideways on relatively low volume, but with a slight increase in volatility," said Randy Frederick, vice president of trading and derivatives at Charles Schwab.
At 11:11 a.m. ET (1511 GMT), the Dow Jones Industrial Average was up 26.16 points, or 0.14 percent, at 18,285.76.
The S&P 500 was up 1.21 points, or 0.06 percent, at 2,132.73 and the Nasdaq Composite was up 1.01 points, or 0.02 percent, at 5,167.19.
The CBOE Volatility index, dubbed Wall Street's "fear gauge", reversed course to drop 2.6 percent, after having notched its biggest one-day drop since late June on Monday.
However, despite the polls indicating a Clinton victory, traders remain wary, noting Britain's shock vote in June to leave the European Union had wrongfooted bookmakers and most pollsters.
"The polls are close just like they were during Brexit and while some people can argue that the makeup of the electoral college will make it difficult for Trump to win, the fear of the unknown is certainly making investors cautious," said Ernie Cecilia, chief investment officer of Bryn Mawr Trust.
Wall Street is also coming off its best day in more than eight months on Monday after the FBI said it would not press criminal charges against Clinton over her use of a private email server.
The iShares MSCI Mexico Capped ETF, known of late as the "Trump ETF", inched up 0.17 percent, a day after notching its best day in more than five years on Monday. The ETF is viewed as a barometer of Trump's chances of winning the election since his policies are considered negative for Mexico.
All the 11 major S&P 500 sectors were higher, led by a 0.7 percent gain in the defensive utilities and telecom services sectors. Financials, the best performer on Monday, were flat, bringing up the rear.
Among stocks, CVS tumbled 13.6 percent to $72.05 and was the top drag on the S&P after the drugstore operator cut its full-year profit forecast. Walgreens fell 3.1 percent.
Hertz's more than 50 percent slump was set to be the stock's biggest ever after the car rental company slashed its full-year profit forecast.
Declining issues outnumbered advancing ones on the New York Stock Exchange by 1,568 to 1,155. On the Nasdaq, 1,496 issues fell and 954 advanced.
The S&P 500 index showed 10 new 52-week highs and three new lows, while the Nasdaq recorded 25 new highs and 52 new lows.
Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza