Volatility, Gold Miner ETFs Outperform as Fear Grows

Amid mounting investor anxiety, exchange-traded funds tied to volatility and gold miner stocks have surged over the past month. As the trade war escalates and recession concerns deepen, ETFs such as the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and the VanEck Gold Miners ETF (GDMN) have emerged as top performers.  

These funds are benefiting from a defensive shift in market sentiment, as investors seek to hedge portfolios against further equity market declines and economic uncertainty.

In this data dive, we take a look at how these ETFs earn their hedging and safe-haven status and consider where these funds may be headed in 2025.

5 Top Performing ETFs: One-Month Gains

Source: Performance data as of April 16, 2025, etf.com Pulse Tool.

The ETF Pulse is a tracking tool designed to provide investors with insights into the top trending ETFs based on fund flows and performance metrics. ETF Pulse offers a platform to monitor, analyze and capitalize on market trends. Give it a try right here.

How These Volatility and Gold Miner ETFs Work

While all these funds are benefiting from risk-off sentiment in the market, and there are similarities between them, there are differences in objective for investors to note.

First, VXX and the ProShares VIX Short-Term Futures ETF (VIXY) track short-term VIX futures contracts, offering exposure to expected market volatility. They tend to spike when equity markets fall sharply and volatility increases.  

GDMN and the Aptus Fortified Gold Miners ETF (AUMI) invest in companies that mine and produce gold, benefiting from rising gold prices during flight-to-safety environments.  

Meanwhile, the YieldMax Gold Option Income Strategy ETF (YGLD) uses options on gold ETFs to generate income while maintaining partial gold exposure.

Outlook for Volatility and Gold Miner ETFs

If the trade war intensifies or global economic conditions deteriorate further, these volatility ETFs and gold miner funds could continue to perform well, as investors seek safety and portfolio hedges. Volatility ETFs, in particular, tend to thrive during sharp market drawdowns, while gold and gold miner ETFs often rise alongside investor demand for hard assets.  

However, it's important to note that these same funds can also decline rapidly if tensions ease, market sentiment rebounds or economic data turns more positive—making them tactical tools rather than long-term core holdings.