Exchange-Traded Funds held up against the unprecedented market volatile this week, showing a testament to the industry's overall strength.
"This has actually been a great victory for ETFs as a structure. Everbody's been concerned in the mainstream media that a big volatility spike like this would unravel some part of the market we didn't understand. In fact, the opposite has happened," Chief Investment Officer and Director of Research at ETF Trends Dave Nadig told CNBC. "We've had no major breaks. Even with the circuit breaker hit, the reopen off that circuit breaker was, frankly, flawless."
Despite Thursday's deep market sell-off, the SPDR S&P 500 ETF Trust
How to Trade During Volatility
In times of uncertainty, investors should look towards funds focused on market 'safe havens' like gold and bonds. Amplify BlackSwan Growth & Treasury Core ETF
Gold has decreased in recent days, but many market observers believe that it will rise again due to the heighten uncertainty surrounding the global economic future. Some funds look for include iShares Gold Trust
Government bonds are often viewed as safer assets during market uncertainty as well. U.S. Treasuries are influenced by mortgages and other loans and some funds to trade include iShares 20+ Year Treasury Bond ETF