Exchange traded funds linked to volatility, Treasury bonds and the U.S. dollar were among the few categories posting gains Wednesday as the Dow dropped nearly 200 points in afternoon dealings.
The flight to safety was evident in bond ETFs as a Treasury fund rallied to wipe away the previous session’s losses. [Treasury ETFs, Big Banks Feel Losses as Bernanke Speaks]
Also Wednesday, PowerShares DB US Dollar Bullish (NYSEArca: UUP) soared nearly 2% as investors rushed into the greenback and increasing worries over Greece’s debt crisis knocked the euro. [Dollar Rally Tarnishes Gold, Silver ETFs]
Fear was apparent in Wednesday’s tape. VelocityShares Daily 2X VIX Short-Term ETN (NYSEArca: TVIX) was up nearly 16% at last check. The leveraged exchange traded note tracks futures contracts on the CBOE Volatility Index. The VIX itself climbed 13% as investors sought protection in the options markets.