15 Most Volatile ETFs

March 01, 2016

Rolling 1-Month & 1-Year Volatility For SPY

Source: Bloomberg

Volatile ETFs Abound

With all measures of stock market volatility constrained, trading opportunities in broad-market funds such as SPY have been limited so far in 2017. But that doesn't mean all ETFs have been as well-behaved.

There are still plenty of products on the market that have given investors rollercoasterlike performance. The most-volatile ETFs, for example, all have annualized volatilities north of 100. These products are almost exclusively leveraged, usually offering traders 2x or 3x the returns of an underlying index.

The Direxion Daily Junior Gold Miners Index Bull 3x Shares (JNUG) and the Direxion Daily Junior Gold Miners Index Bear 3x Shares (JDST) are the two most volatile exchange-traded funds of all. Each has a one-year volatility reading of about 170.

The VelocityShares 3x Inverse Natural Gas ETN (DGAZ), the ProShares Ultra VIX Short-Term ETN (UVXY) and the Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares (DRIP) are a few others to make the most volatile list.

All of these products are designed for quick trades. Holding them too long can result in poor performance due to the performance drag of daily rebalancing.


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