Best Volatility ETFs for Profiting in a Falling Market
Volatility ETFs can be a valuable tool for investors looking to profit when the market falls. These funds are designed to increase in value when market volatility rises, making them a potential hedge against market downturns.
Key Points:
- Volatility ETFs can help investors profit in a falling market
- These funds increase in value when market volatility rises
- They can serve as a hedge against market downturns
Here are some of the best volatility ETFs to consider:
1. ProShares VIX Short-Term Futures ETF (VIXY)
The ProShares VIX Short-Term Futures ETF seeks to provide investors with exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts. This ETF can be a useful tool for profiting from short-term market volatility.
2. iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX)
The iPath Series B S&P 500 VIX Short-Term Futures ETN is another option for investors looking to profit from short-term market volatility. This exchange-traded note is linked to the performance of the S&P 500 VIX Short-Term Futures Index, providing exposure to volatility in the stock market.
By investing in these volatility ETFs, investors can potentially profit when the market falls and volatility rises. It’s important to carefully consider your investment goals and risk tolerance before adding these funds to your portfolio.