Top VIX ETFs to Watch in 2025

Among the premier VIX ETFs available today, VXZ, VIXM, and SVOL stand out as top choices for investors seeking exposure to market volatility.

Market volatility reached unprecedented heights in March 2020, the highest since 2008, triggered by the global coronavirus pandemic and its severe economic disruptions. While volatility eased during much of 2021, recent geopolitical tensions, including Russia's invasion of Ukraine, alongside recession concerns, have caused significant fluctuations. Many investors have turned to volatility exchange-traded funds (ETFs) linked to the Cboe Volatility Index (VIX) to capitalize on these turbulent market conditions.

The VIX is a real-time index that reflects the market’s forecast of 30-day forward-looking volatility, derived from S&P 500 index option prices. Often referred to as the “fear gauge,” it measures market risk and investor sentiment.

Key Insights

• The Cboe Volatility Index (VIX) surged dramatically in March 2020 and remains elevated due to ongoing global supply chain challenges and geopolitical conflicts.
• VXZ, VIXM, and SVOL are the top-performing VIX ETFs based on their one-year trailing total returns.
• These ETFs primarily invest in futures contracts to track market volatility trends.

Direct investment in the VIX is not possible; however, VIX ETFs provide investors with indirect exposure through holdings of VIX futures contracts. These funds' values fluctuate in line with volatility but vary depending on their construction. Typically, these ETFs are suited for short-term trading to leverage rapid volatility shifts rather than long-term buy-and-hold strategies. Due to their complexity, they are recommended for experienced investors.

Currently, five VIX ETFs actively trade in the U.S., excluding leveraged, inverse, and funds with less than $50 million in assets under management (AUM). Over the past year, the VIX has increased by 35.8%, while the S&P 500 posted a total return of -10.6% as of September 7, 2022. Among these, the iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) has delivered the strongest annual performance.

Below, we delve into the three leading VIX ETFs, with data accurate as of September 7, 2022. For clarity on investment strategies, top holdings exclude cash and securities lending proceeds unless exceptionally significant.

iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ)

• One-Year Performance: 7.3%
• Expense Ratio: 0.89%
• Annual Dividend Yield: N/A
• Average Daily Volume (3 months): 21,581 shares
• Assets Under Management: $56.7 million
• Launch Date: January 17, 2018
• Issuer: Barclays Capital

VXZ is an exchange-traded note (ETN) that tracks the S&P 500 VIX Mid-Term Futures Index Total Return. This index provides exposure to a rolling long position in the fourth through seventh month VIX futures contracts, representing market expectations of future volatility. Due to its longer-dated futures, VXZ typically shows lower correlation with the spot VIX. While it avoids tracking error as an ETN, investors should consider credit risk. This product is best suited for sophisticated investors focusing on short-term strategies.

ProShares VIX Mid-Term Futures ETF (VIXM)

• One-Year Performance: 6.6%
• Expense Ratio: 0.85%
• Annual Dividend Yield: N/A
• Average Daily Volume (3 months): 113,100 shares
• Assets Under Management: $102.7 million
• Launch Date: January 3, 2011
• Issuer: ProShares

VIXM operates as a commodity pool, pooling investor capital to trade futures and options on commodities. It tracks the S&P 500 VIX Mid-Term Futures Index, which measures returns of VIX futures contracts with an average maturity of five months. By holding these futures, VIXM offers investors returns linked to anticipated S&P 500 volatility. This ETF is designed for experienced investors who actively monitor their positions and seek short-term exposure.

Simplify Volatility Premium ETF (SVOL)

• One-Year Performance: -4.4%
• Expense Ratio: 0.54%
• Annual Dividend Yield: 2.17%
• Average Daily Volume (3 months): 70,825 shares
• Assets Under Management: $108.7 million
• Launch Date: May 12, 2021
• Issuer: Simplify Asset Management Inc.

SVOL is an actively managed ETF aiming to deliver approximately negative 20% to 30% (-0.2x to -0.3x) of the returns of the S&P 500 VIX short-term futures index. For example, if the index declines by 10%, SVOL targets a positive return between 2% and 3%, net of expenses. The fund combines short VIX positions with options strategies to hedge against extreme volatility spikes.

Disclaimer: The information provided here is for educational purposes and does not constitute personalized investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions. Market conditions can change rapidly, and past performance does not guarantee future results.

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