Volatility ETFs are exchange-traded funds that aim to provide exposure to the volatility of financial markets, as measured by the CBOE Volatility Index (VIX) or other volatility indices. The VIX, also known as the "fear index," measures the market's expectation of volatility in the S&P 500 index over the next 30 days.

Volatility ETFs typically use derivatives such as options and futures to gain exposure to the VIX or other volatility indices. The ETFs can be used as a tool for hedging against market downturns or as a way to profit from market volatility.

However, it's important to note that volatility ETFs can be complex and may not always move in the direction investors expect. They are also subject to the risk of tracking error, which occurs when the returns of the ETF deviate from the returns of the underlying index or benchmark.

Volatility

The ProShares Short VIX Short-Term Futures ETF (SVXY) seeks daily investment results corresponding to one-half the inverse (-0.5x) of the daily performance of the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of first- and second-month VIX futures contracts. The fund is used to profit from declining or stable equity market volatility and reduced its leverage target from -1x to -0.5x after the February 2018 volatility spike. It launched in October 2011.

Cboe US

SVXY

The -1x Short VIX Futures ETF seeks daily investment results corresponding to the inverse performance of the Short VIX Futures Index, which holds and rolls first- and second-month VIX futures contracts. It is a high-risk short-term volatility trading product.

SVIX

The ETF seeks to offer a monthly income stream by monetizing the volatility premium in the VIX futures term structure, providing daily investment results that mirror those of the S&P 500 VIX Mid-Term Futures Inverse Daily Index.

ZVOL

NYSEArca

SVOL

The ProShares VIX Mid-Term Futures ETF seeks investment results that track the performance of the S&P 500 VIX Mid-Term Futures Index, aiming to profit from increases in the expected volatility of the S&P 500, as measured by the prices of VIX futures contracts.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
SVXY	ProShares Short VIX Short-Term Futures ETF	1.10	0.42	0.06	33
SVIX	-1x Short VIX Futures ETF	0.87	—	—	27
ZVOL	Volatility Premium Plus ETF	0.75	—	—	22
SVOL	Simplify Volatility Premium ETF	0.70	0.28	—	23
VIXM	ProShares VIX Mid-Term Futures ETF	-0.65	-0.44	-0.39	4

Top Volatility ETFs by Sharpe Ratio

Top Volatility ETFs by Sharpe Ratio