SVOL offers an amazing 16.76% Yield... But is it safe? Will it survive VOLMAGEDDON 2.0!?

#etfinvesting #incomeportfolio #monthlyincome
This is a review SVOL from Simplify ETFs. SVOL is an interesting combination of VIX futures, VIX options, and collateral... Awesome!... But what does that mean?

Volmageddon article from CFA Institute:

Thanks for watching!

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0:00 Intro
0:18 What was VOLMAGEDDON?
1:55 SVOL Info
2:49 Fund Overview
6:19 Fund Holdings and Strategy
7:01 Buy or Sell?
8:08 Final Thoughts

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[wealthadventures]

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[ClintonSiegel]

Given the events this week (unwinding of yen ‘carry trade’) I had to revisit this! Thank you so much for the excellent information and key considerations. Oh, and of course the great humor! Highly appreciate the content and insight.

[tomuc]

Always interesting to look at these reviews a year later. Fair coverage. I am glad i got in to this and is has its place in my top 3 holdings. Passed the recent VIX spike with ease!

[jimm]

I"ve had it for a year now... it broadly follows the S&P but does fall behind when S&P growth is pretty aggressive. Principle is positive from when I bought it and it pays the 16+% dividend faithfully. With the protective collars, I'm good with it and would encourage others to consider it, especially if you're a dividend guy like me....

[JAVAR]

Thanks for the video. One comment, SVOL is different from the ETNs that exploded during volmageddon (XIV and SVXY) as SVOL only holds a short position of -0.2x to -0.3x the inverse of the VIX compared to XIV or SVXY that were short 1x the VIX.

[sdiver]

Thank you! It occurs to me it would not be hard to model Volmeggeddon impact. So I'm not sure what is "unknown" about that scenario?

When I say "not hard", I mean with a small team of finance wizards and data scientists dedicated to this model. I hope Simplify is doing exactly that and has a gameplan in place for every foreseeable situation.

[gabriellobo]

Svol is changing my investments every mouth . I make around $615 - $620 a mouth with only 50K invested in to Svol . My gole is to be making 1K a mouth from Svol.
Ever mount I get paid so far and i reinvest it . I love it

[MartinD]

Thank you! I’m curious about how you feel about SVOL now that 6 or 7 months have passed.
I know you’ve added it to at least 1 hypothetical portfolio example uses in 1 of your videos so I just assume you hold this ETP in a favorable light.
Anyways, an update would be great.

[guidogonsman]

"Will it survive VOLMAGEDDON 2.0!?" Yes it will, Sir !

[shaneomack]

We jumped on pretty heavy on svol in Oct 2022 when it was 20.74 and putting $100 a week into it and rolling the divs each morning month into jepi. It’s been a atm machine. Clearly just like any high dividend etf or stock it could crash or it can crash but he’ll even a great stock like O is struggling the last 2 months too.

[calledout]

Glad I watched this. I'm selling all of my SVOL now haha.

[Normanrs]

I'm looking at a VIX index chart since 1990. Intuitively, spikes don't last long. So I'm not seeing how the price drop of SVOL wouldn't be merely temporary. Isn't it only at risk if there were a long-term elevation in volatility?

[slickwilly]

Could you please explain to us non futures folks how a large loss is permanent or not? Here is my example.
if the SPY (S&P 500 etf) goes from 500 down to 300 then back to 500, if you didn't sell then no money is lost.
But futures have to sell short term. Wouldn't that lock in the loss permanently?
The reason I ask is that most income investors such as myself buy and hold these ETFs, not swing trade them.

[khanus]

Can anybody please discuss difference between SVOL and ZIVB? can you please create a video with your analysis of the two. I know you are a big advocate of SVOL but what are your opinion on ZIVB and how they both differ and which one is riskier of the two? The Yield is almost the same.

[tonyscinemascope]

wait a minute, i just heard you say a good entry point. what's a good entry point? and how is that determined? just wondering

[matteofoglio]

Are JEPI and JEPQ particularly susceptible to volmageddon?

[JustAnotherPersonHere]

Hey Dave, love your channel and have been watching all your vids (including ads) for several months now.
You mentioned JEPI & JEPQ, which I also hold and like, would you have thoughts on SPYI ?

[fialeeca]

Seems like FEPI is a better option (pun intended) since it offers a similar yield, but with more capital appreciation upside since the etf actually owns shares vs a pure options play. Thoughts?

[richardthorne]

You did a really nice job with this overview. I belong to an investor discord where i see this traded quite a bit. 👍

[SilverGoldComics]

The question I was hoping to have answered is, if the market crashes, would SVOL be expected to rise big, fall big, fall at a smaller rate than the overall market? Thanks