Exchange-Traded Funds held up against the unprecedented market volatile this week, showing a testament to the industry's overall strength.

"This has actually been a great victory for ETFs as a structure. Everbody's been concerned in the mainstream media that a big volatility spike like this would unravel some part of the market we didn't understand. In fact, the opposite has happened," Chief Investment Officer and Director of Research at ETF Trends Dave Nadig told CNBC. "We've had no major breaks. Even with the circuit breaker hit, the reopen off that circuit breaker was, frankly, flawless."

Despite Thursday's deep market sell-off, the SPDR S&P 500 ETF Trust (SPY  ) and the SPDR Dow Jones Industrial Average ETF (DIA  ) opened higher on Friday, continuing the trend of extreme volatility. The U.S. stock market rose on Friday, but this week has become the Dow and S&P's worst week since the financial crisis of 2008. It is time for investors to take the smart approach to the market by preparing for the worst, but hoping for the best.

How to Trade During Volatility

In times of uncertainty, investors should look towards funds focused on market 'safe havens' like gold and bonds. Amplify BlackSwan Growth & Treasury Core ETF (SWAN  ) offers market participants protection during market volatility. The ETF includes 90% U.S. Treasuries as well as S&P exposure.

Gold has decreased in recent days, but many market observers believe that it will rise again due to the heighten uncertainty surrounding the global economic future. Some funds look for include iShares Gold Trust (IAU  ), GraniteShares Gold Trust (BAR  ), Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL  ), as well as SPDR Gold Shares (GLD  ).

Government bonds are often viewed as safer assets during market uncertainty as well. U.S. Treasuries are influenced by mortgages and other loans and some funds to trade include iShares 20+ Year Treasury Bond ETF (TLT  ), iShares 7-10 Year Treasury Bond ETF (IEF  ), iShares Short Treasury Bond ETF (SHV  ) and iShares 1-3 Year Treasury Bond ETF (SHY  ).