Learn to Trade Stocks, Futures, and ETFs Risk-Free, Learn to Day Trade 7x Faster Than Everyone Else, Stop Looking for a Quick Fix. At some point, the indicator is going to come back down to earth. One way to quantify volatility is the CBOE’s Volatility Index, VIX. When investors become fearful, the VIX rises and vice versa. // ]]> Benchmark: S&P 500 VIX Short-Term Futures Index Total Return. Info: Designed to move opposite of the VIX on a daily basis. As you can see from both of these charts while there is movement, you are not going to get the up and to the right action like ETFs that mirror a market index or a growth stock.

These instruments can provide amplified returns but they come with larger expense ratios which can exceed 1%. You can go long or short. Again, this is a measure of forward option activity and options do not stay at sustained levels to the low or high side for very long. Forget Bitcoin, Consider Inverse ETFs, Wells Fargo 401k Participants: Proceed with Caution, Asset Backed Securities: Ticking Time Bomb. Let’s look at a few charts to further illustrate this point. Name: iPath S&P 500 VIX Short Term Futures ETN, Name: REX VolMAXX Long VIX Weekly Futures Strategy ETF, Name: REX VolMAXX Inverse VIX Weekly Futures Strategy ETF, Name: C-TRACS ETN Citi Volatility Index Total Return, Copyright 2018 Inverse-ETfs | All Rights Reserved, Hedging Commodities Against a Bear Market. While the price action does not mirror the index, here are a few rules of thumb. Info: This product is designed to go short volatility, similar to XIV. If the VIX plummets, the market is bullish. This was an inverse ETF to the VIX and when the market sold off, the VIX spiked. Should compete with VXX. This is a pretty exhaustive list. Spikes to the upside imply the market is in bearish territory.

Below is a list of standard volatility ETFs which track short-term and mid-term futures. Benchmark: S&P 500 VIX Short-Term Futures Index. Info: Attempts to go short the VIX, medium-term. Info: CVOL has exposure to the 3rd and 4th months out on the VIX futures curve to possibly reduce the negative affects of contango. ‘Volatility’ describes how much the prices of stocks fluctuate. Here is a volatility ETF list to hedge against a bear market or sudden spikes in volatility which can wreak havoc on an investor's psyche. In this article, I will provide the history and top VIX ETFs. If you disagree with me, please check out this article which covers the fallout of the XIV ETF by Credit Suisse Bank. Your email address will not be published. Benchmark: S&P 500 VIX Mid-Term Futures Index. We’ve seen head-spinning, volatile stock market moves over the last decade. Essentially these are the ones which come up on my scan on a daily basis. This was an inverse ETF to the VIX and when the market sold off, the VIX spiked. If you are contemplating trading these securities, you can test out your strategies within Tradingsim. In other words, if you believe volatility will decrease, you would purchase an inverse volatility ETN. The indicator is also referred to within the trading community as the fear index. Benchmark: S&P 500 Short-Term Futures Index Excess Return. A spike above 60 pretty much-called market bottoms and readings in the 20s would predict market corrections. Want to practice the information from this article?get trading experience risk-free with our trading simulator. Lastly, I will discuss the top 3 VIX ETFs for active traders. Please make sure you read later in the summary section of this article how that at times can be risky. The ProShares VIX Short-Term Futures ETF VIXY tracks an index which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to … VXX Chart – iPath S&P 500 VIX ST Futures ETN (VXX).

With a plethora of risks in the global financial system, it pays to keep an eye on volatility.

Don’t Buy Bitcoin: Inverse ETFs are Better, Sudden Emergency? Info: VIIX is an exchange traded note and is subject to the credit risk of the issuer.