Invesco Total Return Bond ETF Price & Performance (GTO)

The Fear & Greed Index has plunged into "Extreme Fear," its lowest in over a year, following sharp declines in the tech sector. Meanwhile, the VIX, a key volatility measure, surged 20% in February, signaling heightened investor concerns. Defensive ETFs are gaining attention as market uncertainty persists.12

Despite a 3% drop in major indices last week, U.S.-listed ETFs saw $11.7 billion in inflows. The Vanguard S&P 500 ETF (VOO) led with $4 billion, while fixed-income ETFs attracted $6.3 billion. Investors appear divided between "buying the dip" and adopting defensive strategies amid tariff-driven market shocks.23

As markets brace for continued turbulence, investors are increasingly turning to defensive ETFs. Funds like the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and iShares Aaa-A Rated Corporate Bond ETF (QLTA) are drawing attention for their resilience against volatility and economic uncertainty.14