With volatility spiking and the markets being thrown into chaos, investors have turned to ETFs as one of their go-to tools to access the markets.

For example, on Tuesday when U.S. Markets were down 3.8% and the CBOE Volatility Index or VIX jumped to a 23 reading from 16, 35% of the total notional market value was attributed to ETF exchanging hands, according to Deutsche Bank data. ETF volumes made up $190 billion, compared to the total market $540 billion.

Furthermore, looking at the outflows in iShares iBoxx $ High Yield Corp Bd ETF (NYSEArca: HYG), SPDR Barclays High Yield Bond ETF (NYSEArca: JNK), iShares Core US Aggregate Bond ETF (NYSEArca: AGG) and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) with a combined excess of over $7 billion, it is worth mentioning that there are dozens of ETFs that are built as an alternative to simply holding cash.

Investors who are seeking money fund substitutes may look to actively managed, ultra-short duration bond ETFs that are more free to adapt holdings in a shifting market environment, such as the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT), Invesco Enhanced Short Duration Bond (NYSEArca: GSY), SPDR SSgA Ultra Short Term Bond ETF (NYSEArca: ULST) and iShares Short Maturity Bond ETF(NYSEArca: NEAR). Additionally, investors can look at conservative short-duration Treasury bond ETFs, such as the iShares Short Treasury Bond ETF (NYSEArca: SHV) and the SPDR Barclays 1-3 Month T-Bill (NYSEArca: BIL).

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