This stock market is wild. But there's one sure thing.

Copyright © HT Digital Streams Limit all rights reserved. Andy Serwer (with input from Barrons) 4 min Read 09 Apr 2025, 02:14 IST VIX spikes signal volatility; Short -term VIX ETFs are rising, but long -term risk remains huge. Summary certainty seems to have a shortage these days. Volatility is constant. Are there trends that look sure in the markets now? Anything that probably seems with a clear way forward across the balance of the year? Although security is a shortage these days, there was one constant with us during the short duration of President Donald Trump’s second term: volatility. To say: Look no further than the VIX, or the CBOE volatility index, also known as Wall Street’s Fear Gauge, which measures the expected volatility in the S&P 500 over the next 30 days using options prices on the index. According to the Dow Jones market data, the VIX has recently risen more than 65 in the Intraday trade, the highest since August. The highest intraday level on record was set during the 2008-09 financial crisis when the index reached 89. Some prognosticators say the VIX spiking is a signal to buy shares. Although it appears that shares are rallied after the Vix peaks, the devil is in the details. For example, how does one know when the VIX reaches a peak? So why guess. Wouldn’t it make sense to buy the VIX itself in volatile times? The answer is yes, but it doesn’t seem very advisable. First, the VIX is merely an index. Similar to the S&P 500 index, investors cannot buy it directly. If you do, it is the purchase of a exchange -traded fund, where the complications begin. For one thing, some VIX index investments are not actually ETFs. On the contrary, these are ETNs, or exchange-traded notes, which are similar to their ETF nkies, except that they do not own stock effects. Instead, it is debt instruments issued by banks, with their value linked to the performance of the underlying index. As such, they carry credit risk. What can go wrong? Enough. In February 2018, an ETN called the VelocityShare Daily Inverse VIX short -term blown up during a volatility of the volatility called according to a Reuters report ‘called’ Power Company, with an investor assets of nearly $ 2 billion. There is a dozen VIX ETFs with a total of a few billion dollars under management offered by people like Barclays and Proshare Advisors. But to further complicate matters is that VIX provides ETNs and ETFs to different periods: short, medium or long term. Deciding which period to choose seems ominous. As if you need more warnings, Fidelity, who offers these securities for customers to buy, warns that 1.) VIX ETFs are doing a bad job of mimicking the VIX index … and over periods of a month or a year, VIX -TF’s return pattern will differ from the Vix index “and 2.)” VIX ETFs are likely to lose money. “Oh, this. Finally, Fidelity notes that” VIX ETFs are emphatically short -term tactical instruments used by traders. ” After saying all this, some of these funds shook it this year. 26%lower. If all your stomach has, you should note that there are other vehicles available for the faint heart. low-volatility goal built. ‘ Jackson points to the Invesco S&P 500 Low Volatility ETF, with 1.3%off, and the Ishares Edge MSCI min full USA ETF, with 2.5%, both until recently for the year, as two examples. Short stocks and or derivatives), where the AQR Equity Market Neutral is up 7.5%, or according to Morningstar with a bridge. For example, all rates), you might want you to invest 100% in the S&P 500 or the beautiful seven for the case. More Topics #Markets Mint Specialies