Market volatility isn’t over just yet, unfortunately.
With geopolitical tensions still high, tariffs, fears of inflation, and a chance the Federal Reserve will hold off on interest rate cuts make things a bit crazy.
“Volatility will stay with us,” Philippe Gijsels, chief strategy officer at BNP Paribas Fortis, told CNBC. “Headlines keep flowing and go in all possible directions. Besides the geopolitical uncertainty there is still the massive economic uncertainty with the U.S. clearly slowing… The situation in Ukraine — are we going to have a ceasefire or will things escalate? [Then there’s] tariffs, on which the ‘strategy’ changes every five minutes.”
When markets are this rocky, we always like to remind investors to trade volatility.
In fact, we can do that with:
ProShares Ultra VIX Short-Term Futures ETF (UVXY)
As volatility ticks higher with the trade war, ETFs such as the UVXY could run even higher from a current low of $30 a share. The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index.
Over the last few days, the UVXY ETF ran from about $17.50 to a high of $25.75.
iPath S&P 500 VIX Short-Term Futures (VXX)
As volatility returns to the markets, one of the best ways to profit from volatility is with the VXX ETN, which provides exposure to the S&P 500 VIX Short-Term Futures Index Total Return. In simple terms, as volatility shoots higher, so does the VXX. The ETF just ran from a low of about $42.30 to a recent high of $53.95 a share.
ProShares VIX Short-Term Futures ETF (VIXY)
The ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration. Over the last few days, the VIXY ETF ran from about $40.77 to $52.84.

