Volatility is fading as the market rallies into the start of March. How can investors trade this smoother sailing using history as a guide? The CBOE Volatility Index , or VIX, is a key measure of market expectations of near-term volatility conveyed by S & P 500 stock index option prices, according to the CBOE. The VIX is already down more than 30 percent since Feb. 11. Source: FactSet Using hedge fund analytics tool Kensho, CNBC Pro screened for which ETF securities will move if the VIX continues to fall and tests a one-year low. Here is what we found. There are 43 instances of the VIX dropping 20 percent or more in one month during the last decade, according to Kensho. Investors traditionally flock to emerging market country, materials and consumer discretionary ETFs as they are the best performers. iShares MSCI Brazil Capped , which tracks stocks in Brazil, is a top performer averaging a 6.6 percent gain over the last decade. Moreover iShares MSCI Emerging Markets also does well as it provides exposure to 800 international equities. On the flip side, U.S. government bond securities and gold-related ETFs lag as traders look for more aggressive securities. Read More Santoli: Shares of big fund companies now on sale Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.
