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Volatility may linger despite ceasefire hopes. Volatility ETFs could help investors hedge against potential downside risks.

March winners were clear -- Shipping, Energy, Commodities & Volatility ETFs surged as war risks, supply shocks, and market swings drove big gains.

While the ETF industry is sometimes scrutinized for packaging niche investments into a retail wrapper, ETFs have historically been one of the key ways to democratize access to legitimate “hard-to-reach” investment strategies. The ETF wrapper has made many of these exposures more convenient to buy and easier to incorporate into portfolios.

The ongoing conflict in the Middle East has kept markets under pressure since its onset, with the S&P 500 falling about 4.19% over the past month and 0.41% over the past five days. Volatility has been a constant theme so far this year, with the broad market index down roughly 4.68% year to date.

Middle East tensions and Strait of Hormuz disruptions lift volatility and oil risks, pushing investors toward hedges like volatility, gold and consumer staples ETFs.