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 $1.93B. 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 $832.06M in assets. In the last trailing year, the best performing Volatility ETF was the UVXY at 249.32%. 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.

Volatility UNIVERSITY

Daily ETF Watch

3 ETFs To Close

QuantX and Virtus are shutting ETFs with low assets.

Index Investor Corner

Swedroe: Understanding Risk & Return

There are different types of risk to consider when seeking diversification.

ETF.com Analysis

ETFs In Chaos: Shock Absorbers

There’s a lot of misinformation about how ETFs work in times of volatility. We just had a master class.

Daily ETF Watch

New ETF Guards Against Swans

Latest offering from Amplify looks to avoid losses from black swan events.

ETF.com Live Chat!

Live Chat: Hidden Costs & ESG's Future

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

ETF Report

Dave Nadig: Correlation Conundrums

Diversification is a long-term game.

Features and News

Understanding Spiking VIX ETFs

Why volatility exchange-traded products worked.

Features and News

Market Correction’s Meaning For ETFs

Why the market has dropped precipitously this month, and what investors should do about it.

Index Investor Corner

Swedroe: Why Int'l Diversification Works

Over the long term, diversification remains the only free lunch.