Volatility ETFs offer investors and traders exposure to the Chicago Board Options Exchange’s (CBOE) popular Volatility Index (VIX). It is one of the ultimate gauges (or indicators) of fear within the market and often moves in the opposite direction of the overall U.S. equity markets. (The VIX index is composed of 30-day puts against the S&P 500 Index.)
Note that these ETFs are used primarily by traders looking to profit from sharp market movements.
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