The markets and exchange traded funds (ETFs) experienced some volatile trading during the end of the summer months. Consequently, volatility-linked ETFs vaulted ahead while the broader market languished.
The Dow Jones Industrial Average finished the quarter down 12% and lost 6% in September. The S&P 500 lost 14% for the quarter and 7% for the month. Meanwhile, the Nasdaq dropped 13% and 6%, respectively.
After the S&P downgraded U.S. debt, the markets plunge writhed in turmoil. Additionally, weaker global data coupled with the escalating financial crisis in the Eurozone exacerbated the worsening market sentiment.
The top performers in September and for the quarter included VIX ETFs. C-Tracks Linked to the CVOLT Index ETN (NYSEArca: CVOL), VelocityShares Daily Long VIX Short-Term ETN (NYSEArca: VIIX) and iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX).