Volatility-linked assets and exchange traded funds have become a staple for some investors in this tumultuous market. Direxion came out with its own line of volatility-based ETFs, but now, the company is lowering the level of exposure the funds will take during times of low volatility.

According to a press release, Direxion will change the principal investment strategy of Direxion S&P 1500 RC Volatility Response Shares (NYSEArca: VSPR), Direxion S&P 500 RC Volatility Response Shares (NYSEArca: VSPY) and Direxion S&P Latin America 40 RC Volatility Response Shares (NYSEArca: VLAT).

The funds try follow a Risk Control Index, which are designed to respond to the volatility levels of the underlying indices by adjusting its exposure to equities and U.S. Treasury Bills based on market volatility. [Sell in May: Stock ETFs Under the Gun]

Currently, the funds may hold up to a 150% allocation into equities and 0% in T-Bills when the exponential volatility is at 10%, or the fund may hold 15% in equities and 85% in T-Bills when the exponential volatility reaches 100%.