The Dow ended an eight-day losing streak last Friday, but those gains were erased quickly today as it fell by almost 350 points amid more trade concerns. While this doesn’t help the bulls, traders capitalizing on the volatility are rejoicing as the markets fluctuate, which makes for a suitable environment when investing in volatility ETFs.
The CBOE Volatility Index is a key indicator in short-term expectations in the volatility of the S&P 500. ETFs tracking the movement of this indicator have been making gains as the tariff-for-tariff battle wages on between the United States and China.
ProShares VIX Short-Term Futures (NYSEArca: VIXY) is up a whopping 14.3% today and up about 15% the past five days: