Worried About Volatility? Snag This ETF Today

North American stocks have continued to build momentum in the first two months of 2021. However, economists and analysts are starting to sound the alarm. Top United States indexes were down marginally in mid-afternoon trading on February 18.

Investors who want to bet on an increase in volatility in the near term should look to the S&P 500 VIX Short Term Futures ETF (TSX:HUV). This ETF utilizes prices of the next two near-term VIX futures contracts to replicate a position that rolls the nearest month VIX futures to the next month on a daily basis in fractional amounts.

Shares of this ETF have climbed 18% year-over-year at the time of this writing. The ETF was up 1% in mid-afternoon trading today.

Warren Buffett is a legend in the investing world for a reason. He is one of the most influential value investors on the planet. Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. The Buffett indicator is a measure of the total value of all publicly traded stocks in a country, divided by that country’s Gross Domestic Product (GDP).

The Buffett indicator has jumped to a record high in the middle of February. Investors should be very cautious in this environment. Those who want to hedge against an overheated market should look to stash this ETF in their portfolios in the late winter.