Investors are using leveraged ETFs and alternative funds to combat the market's recent jitters instead of blaming them for causing the volatility, said Steve Sachs, Head of Capital Markets at ProShares. Sachs added that a smart option for advisers seeking diversification for their clients in the face of high volatility is the recently launched ProShares Morningstar Alternative Solutions ETF. He said flows into financial ETFs have increased after better than expected earnings reports from the likes of Goldman Sachs and Morgan Stanley. And despite earnings weakness from Google and eBay he said professionals are using leveraged ETFs to gain exposure.

More from Video

Outdoorsy Figured Out How to Make Money Off That Idle RV in Your Driveway

Outdoorsy Figured Out How to Make Money Off That Idle RV in Your Driveway

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

Jim Cramer: Aramark Is a Great Company but It's Levered to Baseball

It's Not Over Yet: Keep an Eye on FANG Stocks

It's Not Over Yet: Keep an Eye on FANG Stocks

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level

Jim Cramer on the Markets: 2:45pm Is a Make or Break Level

Video: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Video: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries