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 8 ETFs traded on the U.S. markets, Volatility ETFs have total assets under management of $2.78B. The average expense ratio is 0.96%. Volatility ETFs can be found in the following asset classes:

  • Alternatives

The largest Volatility ETF is the iPath Series B S&P 500 VIX Short Term Futures ETN VXX with $901.46M in assets. In the last trailing year, the best-performing Volatility ETF was SVXY at 29.84%. The most recent ETF launched in the Volatility space was the Dynamic Short Short-Term Volatility Futures ETF WEIX on 01/13/22.

Volatility University

Features and News

Worst Performing ETFs Of The Year

The worst performers fell by 25% to 72% over the course of 2021.

Features and News

New COVID Variant Fears Rattle Markets

Worries over just how bad the newest COVID variant will be have sent the market on a rout.

Daily ETF Watch

iShares Debuts ESG Min Vol ETF

'ESMV' is an ESG-flavored clone of one of the largest-outflow ETFs this year.

Features and News

Why Investors Turn To ETFs In Volatile Markets

The majority of active managers are failing to find alpha in choppy markets.

Daily ETF Watch

Simplify Adds Put/Spread Collar ETF

The new actively managed fund uses an options strategy that reduces volatility while generating income for the investor. 

Index Investor Corner

Are Defined Outcome ETFs For You?

Or are there better ways to protect against market declines?

Daily ETF Watch

Simplify Adds Tail Risk ETF

The new fund combines approaches meant to generate income and protect against steep downside losses. 

Daily ETF Watch

ETF Odds & Ends: Federated Hermes Jumps In

Also, VanEck announced a change in its ETF branding.

Daily ETF Watch

ETF Odds & Ends: New Fund Targets Penny Stocks

Plus, updates on a number of ETF closures and other changes.