3 ETFs Thriving in April’s Market Chaos—Are You Missing Out?

Key Points

• Market volatility in April 2025 is driven by global tariff uncertainty, prompting demand for diversified investment vehicles.
• Infrastructure and international healthcare ETFs have shown resilience, outperforming the S&P 500.
• A volatility-tracking ETF (VIXY) offers short-term opportunities for aggressive investors during market spikes.

In April 2025, it is essential that investors consider market volatility before making any move, regardless of risk level. 

With markets see-sawing up and down on a daily (or even minute-by-minute) basis on hints of global tariffs updates, there's an opportunity to time an investment to win short-term gains.

However, most investors are likely looking for a safer bet—an investment that is likely to appreciate over time or at least one that is relatively unaffected by the downturn.

Exchange-traded funds (ETFs) present a compelling option in this climate. By design, ETFs spread exposure across multiple assets, providing diversification that can help cushion against sudden market downturns. Though not immune to volatility, several ETFs have outperformed the S&P 500 in both the five-day and one-month periods ending April 11, 2025.

ProShares DJ Brookfield Global Infrastructure ETF NYSEARCA: TOLZ, ProShares VIX Short-Term Futures ETF BATS: VIXY, and KraneShares MSCI All China Health Care Index ETF NYSEARCA: KURE are three standout performers that investors may want to keep on their radar.

Looking for Stability? This Infrastructure ETF Delivers

First up is the ProShares DJ Brookfield Global Infrastructure ETF, a fund targeting companies around the world that focus on oil and gas, water, electricity, and other infrastructure.

Because these services and facilities are essential regardless of the state of the markets, they tend to be a more defensive play when volatility is high. The fund's breadth means that it includes companies of multiple market capitalizations and all developed markets, potentially further insulating it from the impact of tariffs on the U.S. economy in particular.

Investors may note that TOLZ has a significant focus on oil and gas infrastructure, with about 40% of the portfolio weighted to that industry. Given the sudden drop in the price of oil amid the ramping up of a trade war between the United States and China, there may be concern about the impact on this segment of the TOLZ portfolio. However, the fund's broad mandate gives it the flexibility to shift allocations toward firms with potentially greater stability.

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TOLZ is up about 3.4% in the five days leading to April 11 and down under 1% in the last month. By contrast, the S&P 500 is down about 5% in the month leading to April 11.

A VIX-Focused Fund to Capitalize on Short-Term Volatility Spikes

One way to turn the recent market turbulence into a positive is through a fund like the ProShares VIX Short-Term Futures ETF.

This ETF is linked to an index of futures of the CBOE Volatility Index, commonly known as the VIX, which gauges investor expectations of volatility. As anxiety over future turbulence increases, so too does the VIX—a short-term futures fund like VIXY can thrive at times like the tariff-related uncertainty of early April.

As a short-term fund, VIXY is not designed to be held over longer periods. But it has spiked significantly in 2025, the predictable result of ongoing and increased fear about the nature and impact of tariffs from the Trump administration across market environments.

Chinese Healthcare Names Rebound Sharply From Tariff News

Another approach to identifying funds that may not be heavily impacted by U.S. market upsets is to look to those with an international focus. The KraneShares MSCI All China Health Care Index ETF NYSEARCA: KURE capitalizes on the massive Chinese equities market, specifically the healthcare sector—which climbed to nearly half a trillion dollars in 2023 alone—with stocks listed in mainland China and Hong Kong as well as in the United States.

A benefit for U.S. investors is that it may be relatively insulated from short-term volatility in the domestic equities space, although the building trade war between the United States and China could have a longer-term impact. On the other hand, KURE's portfolio of close to 50 names likely includes many stocks with which U.S. investors are not typically familiar, so additional research may be necessary to stay informed.

Though KURE dropped in early April in the lead-up to new tariffs, it rebounded strongly in the several days leading to April 11, reaching an overall improvement of more than 10% in the five-day period through that date.