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These ETFs can help investors protect themselves from selloffs like the DeepSeek panic — but here’s the catch - MarketWatch

1. Buffer ETFs gained popularity amid market volatility from DeepSeek's emergence. 2. VIX fell 4.35% as tech stocks faced declines due to high valuations. 3. Despite Nvidia's slump, investors funneled $1.53 billion into leveraged ETFs. 4. Buffer ETFs offer downside protection but limited upside returns versus traditional stocks. 5. Complexity of buffer ETFs may confuse investors amid rising interest rates.

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FAQ

Why Bearish?

Market volatility may increase demand for VIX as investors seek protection, indicated by rising VIX during previous tech downturns.

How important is it?

The article highlights trends in ETFs and volatility, linking them to VIX movements.

Why Short Term?

Current market dynamics and upcoming interest rate announcements create immediate influence on VIX.

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