KUALA LUMPUR, April 25 (Bernama) -- Bursa Malaysia extended its uptrend for a third consecutive day on Friday, closing higher on renewed buying interest amid positive regional market performance due to potential de-escalating US-China trade tensions. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.68 points, or 0.18 per cent, to 1,509.20 from Thursday’s close of 1,506.52. The benchmark index opened 5.12 points better at 1,511.64, and moved between 1,505.68 and 1,512.29 throughout the day. Market breadth was positive, with advancers beating decliners 651 to 325, while 434 counters were unchanged, 1,047 untraded, and 39 suspended. Turnover improved to 3.10 billion units valued at RM1.95 billion against Thursday’s 3.08 billion units valued at RM2.14 billion.
Volatility is the only constant.
Since President Trump’s second term began, the markets have been on a rollercoaster. Just look at the VIX — Wall Street’s fear gauge — which surged above 65 this week, its highest since last August. That’s a major spike, and it signals traders are bracing for more chaos.
Some say that when the VIX peaks, it’s a good time to buy stocks. The problem is — how do you know when it’s peaked?
Should You Buy the VIX?
In theory, yes. In practice, not so fast.
You can’t buy the VIX index directly.
You’d need to invest in VIX ETFs or ETNs. These are not simple or safe — they carry credit risk and don’t always track the VIX well.
Case in point: in 2018, one VIX ETN imploded during a spike in volatility, wiping out $2 billion in investor assets. That moment was nicknamed "Volmageddon."
Also, these ETFs and ETNs come in different flavors (short-, mid-, long-term), and their performance often diverges from the VIX itself. Even Fidelity warns VIX ETFs tend to lose money in the long run.
Still, Some Are Soaring
The 2x Long VIX Futures ETF is up 117% this year.
Others like ProShares VIX Mid-Term Futures ETF are up around 24%.
Meanwhile, the S&P 500 is down 15%.
But others like the Simplify Volatility Premium ETF are down 26%, proving that not every VIX-related play is winning.
Calmer Options Exist
If high-octane VIX trading isn’t your thing, there are more grounded options:
Low-volatility ETFs have held up:
Invesco S&P 500 Low Volatility ETF: down just 1.3%
iShares Edge MSCI Min Vol USA ETF: down 2.5%
Equity market neutral funds are another hedge:
AQR Equity Market Neutral N: up 7.5%
Bridgeway Global Opportunities Fund N: up 1.5%
Not explosive, but not portfolio wreckers either.
Bottom Line
If Trump were to cancel tariffs tomorrow, this whole narrative could flip. Stocks could rally. Tech could come roaring back. But for now, volatility is the sure thing — and everyone’s trading accordingly.
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