7 Best ETFs to Bet on or Against the VIX | Investing

If you want a clear read on how geopolitical events have shaped markets in 2026, look no further than the CBOE Volatility Index, or VIX.

The VIX estimates expected volatility in the S&P 500 over the next 30 days by analyzing the prices of index call and put options. When investors buy more protective put options, often during periods of uncertainty, option premiums rise, which pushes the VIX higher.

In that sense, the VIX reflects market demand for downside protection rather than actual price movements. That dynamic has been on display this year. The VIX began 2026 around 14.5 and surged above 31 in late March as conflict between the U.S., Israel and Iran escalated, including disruptions around the Strait of Hormuz.

Historically, the VIX tends to move inversely to the S&P 500. When equities fall sharply, demand for hedging increases, and the VIX rises, though the relationship is not perfectly linear.

This has led some investors to view the VIX as a hedge, but it is not something you can invest in directly. The VIX is a calculated index, not a tradable asset. Instead, exposure comes through derivatives such as VIX futures and options, which derive their value from expectations of future volatility.

To make access easier, asset managers package VIX derivatives into exchange-traded funds, or ETFs. These VIX-linked ETFs can be bought and sold like stocks, but they come with trade-offs. Many carry higher expense ratios, may issue K-1 tax forms, and often experience long-term price decay due to the structure of VIX futures and the tendency of volatility to revert to its average.

“Remember a key thing about the VIX: It needs a reason to stay elevated,” says Matthew Tuttle, CEO and chief investment officer at Tuttle Capital Management. “So, it will spike from time to time, but once whatever caused the issue goes away, it will go back to normal.”

As a result, VIX ETFs are generally not suited for buy-and-hold investing or broad portfolio diversification, and are more commonly used for short-term tactical trades or income-oriented strategies.

“Volatility ETFs are increasingly being used either to hedge periods of heightened stock market volatility, or to speculate its next move,” says Curtis Congdon, president of XML Financial Group. “But while there are use cases for these products over short, predetermined periods of time, it’s hard to envision most investors benefiting from long-term exposure to volatility ETFs.”

Here are seven of the best ETFs to bet on or against the VIX in 2026:

ProShares VIX Short-Term Futures ETF (VIXY)

Expressing a view on the VIX starts with deciding whether you want to go long or short volatility. Going long volatility means you expect market turbulence to increase in the near term, while going short means you expect it to decline. A common tool for taking a long volatility position is VIXY, which tracks the S&P 500 VIX Short-Term Futures Index. VIXY currently holds May and June VIX futures.

Over the past decade, VIXY has lost an annualized 46.7%, driven by the mean-reverting nature of volatility and the structure of VIX futures. These futures are often in a state of contango, which forces the fund to sell cheaper expiring contracts and buy more expensive ones, creating a steady drag on returns. A high 0.85% expense ratio further hampers the long-term potential of VIXY.

ProShares VIX Mid-Term Futures ETF (VIXM)

VIXY concentrates its exposure in front-month VIX futures. This gives it a higher sensitivity to movements in the spot VIX, but also exposes it to the steepest contango effects. For a more moderated approach, investors may consider VIXM, which holds a ladder of longer-dated contracts. It currently owns futures expiring August through November, targeting an average maturity of about five months.

This structure creates a different risk and return profile. VIXM is less responsive to short-term spikes in volatility compared to VIXY, but it also experiences less drag from contango over time. As a result, its long-term performance has been better, with a 10-year annualized loss of 10.6%. VIXM may be more suitable for investors seeking a longer-duration hedge, though it still carries a high 0.85% expense ratio.

ProShares Ultra VIX Short-Term Futures ETF (UVXY)

Some traders are comfortable with the short-term nature of VIX futures ETFs. In these cases, factors like mean reversion, contango and fees matter less than convexity, referring to how sharply the ETF responds to spikes in volatility. If that is the objective, UVXY may be ideal. It targets a daily leveraged return of one-and-a-half times the S&P 500 VIX Short-Term Futures Index for a 0.95% expense ratio.

The added leverage makes UVXY more sensitive to sudden jumps in the VIX, making it a potent hedge against market risk, but it also amplifies structural headwinds. Contango and the tendency for volatility to fall over time have historically led to steep losses when held beyond short periods. Over the past decade, UVXY has lost about 72.9% annualized, requiring multiple reverse splits to maintain its share price.

2x Long VIX Futures ETF (UVIX)

UVXY is no longer the most leveraged VIX futures ETF. That distinction now goes to UVIX, which targets a 2x daily return of a portfolio of first- and second-month VIX futures contracts represented by the Long VIX Futures Index. The daily settlement price of UVIX’s benchmark is based on an average of futures prices toward the last 15 minutes of the trading session, which helps smooth out daily valuation.

The trade-offs are the same as other long VIX ETFs, but more pronounced due to the higher leverage. UVIX can spike sharply during volatility surges, but it also experiences faster losses from contango and mean reversion. UVIX also issues a Schedule K-1 because it is structured as a partnership holding futures contracts, which can complicate tax reporting and often arrives later than standard tax forms.

-1x Short VIX Futures ETF (SVIX)

Investors can also bet against the VIX, which involves shorting VIX futures rather than going long. This flips the return profile. You can reap steady gains from contango and the tendency for volatility to fall over time, but you’re exposed to sharp losses when volatility spikes. That risk is why short volatility strategies are often described by investment experts as “picking up pennies in front of a steamroller.”

SVIX provides this exposure by delivering the daily inverse return of a short-term VIX futures index, which currently means shorting near-term contracts such as May and June futures. To help manage risk, SVIX allocates a portion of its portfolio to VIX call options, which can gain value when volatility surges. This provides partial protection, but it is not a full hedge against sudden spikes in the VIX.

ProShares Short VIX Short-Term Futures ETF (SVXY)

SVXY is one of the few short-volatility ETFs to survive the 2018 “Volmageddon” event, when a sudden spike in volatility caused several inverse VIX ETFs and exchange-traded notes to collapse. During that episode, SVXY was not liquidated, but it did suffer a sharp 95% drop in its net asset value. The event highlighted how quickly short-volatility strategies can unravel when markets move against them.

In response, the fund reduced its exposure. SVXY now targets half the daily inverse return of the S&P 500 VIX Short-Term Futures Index, making it less aggressive than products like SVIX. This means it captures less upside when volatility declines and contango works in its favor, but it also limits losses when volatility spikes. SVXY charges a high 0.95% expense ratio, the same as UVXY.

Simplify Volatility Premium ETF (SVOL)

SVOL is less of a pure short VIX futures strategy and more of a hedge fund-like income ETF. Its core portfolio consists of a mix of Simplify equity, fixed-income and alternative funds. On top of that, it adds a modest short volatility position, targeting one-fifth to three-tenths the inverse of the VIX using futures. The strategy currently produces a high 23% distribution yield with monthly payouts.

“SVOL also integrates a protective VIX call option overlay to hedge tail risk,” says Jeff Schwarte, chief equity strategist at Simplify. “The strategy’s active management is a key differentiator, enabling dynamic allocation based on market conditions, particularly the shape and slope of the VIX futures curve.” Unlike other VIX ETFs, SVOL does not issue a K-1 tax form and is also cheaper, at a 0.66% expense ratio.