iPath Series B S&P 500 VIX Short-Term Futures ETN Price & Performance (VXX)

The recent 11% drop in the VIX has created mixed outcomes for ETFs tied to volatility. Inverse ETFs, like SVIX, gained 6%, while long-volatility ETFs such as VXX and UVXY saw declines exceeding 6%. Traders are capitalizing on these trends, but caution remains due to inherent risks in these instruments.12

Recent U.S. tariff decisions have amplified market uncertainty, contributing to fluctuating investor sentiment. The volatility has impacted equity and bond markets alike, with traders closely monitoring policy shifts. As inflation concerns linger, analysts are advising caution in navigating the unpredictable trading environment.34

Amid significant market declines, ETFs like IVV and VOO attracted $1.5 billion and $1.3 billion, respectively, in new investments. This trend signals investor confidence in core equity funds, even as volatility and policy uncertainty dominate the financial landscape. Leveraged ETFs also saw notable activity, reflecting diverse trading strategies.24