Volatility ETF Overview

Volatility ETFs are popular trading products. These products are linked to volatility futures. They own or short futures based on the CBOE Volatility Index (VIX). The VIX index portrays the price volatility embedded in the option prices of the S&P 500 Index for the next 30 days.

Investors need to understand that these funds track the futures on the VIX, not VIX itself. Because of the nature of the VIX futures markets, the rolling cost of futures may be detrimental to performance results. Thus, these products may lose money over the long term. Investors need to approach these products with care.

With 15 ETFs traded in the U.S. markets, Volatility ETFs gather total assets under management of $2.61B. The average expense ratio is 1.28%. Volatility ETFs can be found in the following asset classes:

  • Alternatives

The largest Volatility ETF is the iPath S&P 500 VIX Short-Term Futures ETN VXX with $897.80M in assets. In the last trailing year, the best performing Volatility ETF was the UVXY at 320.50%. The most-recent ETF launched in the Volatility space was the iPath Series B S&P 500 VIX Short Term Futures ETN VXXB in 01/17/18.


Index Investor Corner

Swedroe: More Investing Lessons From 2018

Part two of the key investment takeaways from the prior year.

ETF.com Live Chat!

Live Chat: Leveraged ETFs Are Tricky

Dave Nadig answers readers' ETF questions in real time. Here's the transcript.

Features and News

Worst Performing ETFs Of 2018

The worst performers fell as much as 92% in 2018.

Index Investor Corner

Swedroe: Sky Isn’t Falling

Catastrophizing will get you nowhere good as an investor.

Index Investor Corner

Swedroe: No Safety Flags In Investing

There’s no signal telling you it’s safe to invest; make a plan and stick with it.

ETF.com Live Chat!

Live Chat: Gurus & Illiquid Markets

Dave Nadig answers readers' ETF questions in real time. Here's the transcript.

Features and News

Top Performing ETFs Of 2018

U.S. stock market had its worst loss in 10 years, but some ETFs escaped 2018 with big gains.

Daily ETF Watch

3rd Buffered ETF Trio Debuts

Innovator ETFs has nearly completed its family.

ETF Report

 Data At A Glance: January 2019

Diverse funds saw the top inflows in November.