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.
Top VIX ETFs to consider
Here are five of the most notable ETFs for the VIX to consider in 2026, including how they work, what they cost, how to buy, and when they might be appropriate to use.
ProShares VIX Short-Term Futures ETF (VIXY)
The ProShares VIX Short-Term Futures ETF (VIXY -1.64%) 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.
Should you invest in VIX ETFs?
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.
