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You can’t invest directly in the CBOE Volatility Index (VOLATILITYINDICES:^VIX), also known as the VIX, because it’s just a number derived from S&P 500 options pricing. But if you want exposure to market volatility, a range of VIX exchange-traded funds (ETFs) offer a way to proxy that exposure.
These funds use derivatives like VIX futures to either bet on or against volatility. Some are designed to spike when markets panic, while others benefit when volatility trends low. It’s crucial to read the fine print because VIX ETFs are known for unpredictable behavior over time, sharp drawdowns, and complicated tax treatment. Before investing, make sure you understand what you’re really holding.
The ProShares VIX Short-Term Futures ETF (NYSEMKT:VIXY) tracks the S&P 500 VIX Short-Term Futures Index, which doesn’t reflect the live VIX but instead holds front-month VIX futures contracts. As of May 9, 2025, for example, this included May and June VIX futures, which were rolled over periodically to maintain constant short-term volatility exposure.
This ETF is best used as a short-term hedge. When the S&P 500 drops, volatility tends to spike, and VIX futures usually follow, giving this ProShares futures ETF strong, positive correlation to sharp market drawdowns.
However, long-term holders tend to lose money, primarily due to contango, a condition where longer-dated VIX futures cost more than near-term ones. When this ETF rolls its contracts, it repeatedly sells low and buys high, which erodes performance. On top of that, volatility tends to revert to the mean, so any spike is usually followed by a pullback. The 0.85% expense ratio accelerates that drag, and because this VIX ETF holds futures, investors also receive a K-1 form at tax time, which can complicate filings.
The ProShares VIX Mid-Term Futures ETF (NYSEMKT:VIXM) offers a more tempered alternative to short-term volatility products like the ProShares VIX Short-Term Futures ETF (VIXY).
Instead of tracking front-month contracts, it follows the S&P 500 VIX Mid-Term Futures Index, which maintains exposure to VIX futures with a weighted average of five months to expiration. As of May 9, 2025, the ETF was holding a ladder of August, September, October, and November 2025 VIX contracts.
The trade-off is straightforward: this ProShares futures ETF is less sensitive to short-term volatility spikes, so it won’t surge as much when markets panic. However, it also suffers less from contango, since the longer-dated VIX futures it holds are typically flatter on the curve. That means slower decay over time, making this ProShares ETF a slightly better fit for medium-term tactical views on rising volatility.
Like its short-term sibling, this ETF charges a 0.85% expense ratio and issues a K-1 form, which can complicate tax reporting and often arrives close to the deadline. This futures ETF still isn’t a set-and-forget hedge but may suit investors looking for less whiplash than the ProShares VIX Short-Term Futures ETF.
The ProShares Ultra VIX Short-Term Futures ETF (NYSEMKT:UVXY) is essentially the ProShares VIX Short-Term Futures ETF (VIXY) with leverage, tracking the same S&P 500 VIX Short-Term Futures Index but using 1.5x (150%) daily exposure. This leverage amplifies both gains and losses, making the ETF highly reactive to volatility spikes, though still not perfectly correlated with the spot VIX.
On sharp market selloffs, this VIX ETF can surge dramatically, making it a go-to for traders looking to profit from short-term fear. However, that leverage cuts both ways. Its decay is severe due to a combination of contango, mean reversion in volatility, and the compounding effect of daily resets, which causes long-term returns to become path dependent and strongly negative.
With a 0.95% expense ratio, it’s also more expensive than non-leveraged VIX ETFs. Add in the frequent reverse splits needed to keep the share price from collapsing, and you have a product that’s strictly for short-term tactical trades, not long-term hedging or investing.
The ProShares Ultra VIX Short-Term Futures ETF is built for jump-in, jump-out execution. Holding it too long is almost guaranteed to erode value.
Unlike the three previous ETFs, the ProShares Short VIX Short-Term Futures ETF (NYSEMKT:SVXY) is for investors looking to profit from falling volatility. It tracks the S&P 500 VIX Short-Term Futures Index, which includes near-term contracts, but it does so inversely at 0.5x (50%) exposure. That means when short-term VIX futures fall, this ETF rises at half the inverse rate net of fees.
The appeal here lies in how volatility tends to revert to the mean, and how contango erodes the value of VIX futures. This ETF essentially benefits from the same mechanics that cause the ProShares VIX Short-Term Futures ETF to decay, and it’s not uncommon to see this inverse ETF trend upward steadily during calm, bullish markets.
The catch is that when volatility spikes -- especially suddenly -- this inverse ETF can drop sharply. In 2018, back when it offered full inverse exposure (1x), the ETF lost more than 90% of its value in a single day. ProShares has since reduced the leverage to 0.5x to reduce the risk of a repeat event.
This inverse ETF is best used as a tactical play, such as buying it after a volatility spike, when the VIX is expected to revert lower. It’s not a long-term core holding but can work as a short-term position in a falling volatility environment.
The -1x Short VIX Futures ETF (NYSEMKT:SVIX), offered by Volatility Shares, provides full -1x inverse exposure to the S&P 500 VIX Short-Term Futures Index, unlike ProShares’ more tempered 0.5x exposure. That means this ETF is designed to rise when VIX futures fall and decline when they spike with double the sensitivity.
Because of this, this ETF amplifies the benefits of contango and mean reversion. In calm markets, it can steadily appreciate as volatility trends lower and VIX futures decay. However, it also comes with significantly more downside risk, as any sharp rise in VIX futures or the spot VIX can lead to steep, rapid losses.
To help mitigate this, the Volatility Shares ETF maintains a hedging overlay using out-of-the-money VIX call options. These hedges are designed to limit the ETF’s worst-case losses, but they won’t fully protect against major volatility shocks.
The use is similar to ProShares' short-term futures ETF mentioned above: as a a tactical trade on falling volatility. However, Volatility Shares' ETF is better suited for aggressive, risk-tolerant investors who are prepared to monitor the position closely and act quickly if conditions change. This is not a buy-and-hold fund.
VIX ETFs are highly advanced, expensive products that often behave in ways counterintuitive to most retail investors. The biggest misunderstanding is that none of these ETFs track the actual spot VIX. They all follow some version of VIX futures, which are correlated to the spot VIX but can behave very differently depending on which contracts are tracked and the shape of the VIX futures curve.
These products are a niche where both the long and short sides come with the real risk of total wipeout. Go long too long, and contango, mean reversion, and high fees will slowly bleed your returns. Go short too long, and you may enjoy a winning streak until one bad volatility spike wipes out a big chunk of gains or more.
Either way, if you're using these ETFs, you need a clear system. That means knowing exactly when you'll buy and sell, monitoring positions daily, having risk controls in place, and understanding that many of these funds issue K-1 tax forms that will complicate filing. These are not buy-and-hold investments. They are tools for disciplined, tactical traders, not casual investors.
Here are five of the most notable ETFs for the VIX to consider in 2025, including how they work, what they cost, how to buy, and when they might be appropriate to use.
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