This research is aimed at using Volatility Index (VIX) as the market timing indicator of leveraged and inversed ETF, while using VIX’s buy/sell signals to construct investment portfolios, and to observe their performance. The success rate of entire investment under the leveraged ETF strategy had reached 55.67%, while the success rate under the inversed ETF strategy had reached 48.15%, which indicates that strategies taken in this research had created 55.67% and 48.15% positive return rates, respectively. To sum it up, as the VIX has around 50% chances to know the stock market volatility and efficiently reflect investors’ emotion, VIX may be a market timing indicator of inversed ETF. Moreover, the success rate of selling leveraged ETF had reached 57.3%, while the success rate of purchasing inversed ETF had reached 66.67%, which means when it is in bear market, shorting leveraged ETF and longing inversed ETF are able to create better success rate.