Is the SVOL Yield for Real? (17.9%)

The Simplify Volatility Premium ETF (SVOL) provides ULTRA High dividends. Sounds too good to be true? This past year, SVOL's strategy of shorting the VIX has produced impressive results. If you like dividend investing, I hope you enjoy this SVOL ETF review.

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UPDATE:
4/4/2023: I've been advised that the SVOL future listed as UXK3 on the Simplify website actually refers to a future listed on the CBOE under the symbol "VX/K3". Link below to the relevant CBOE page:

✏️ LINKS FROM TODAY'S EPISODE:
My Favorite SVOL Analysis Article:

FUND MANAGER'S DEEP DIVE:

SVOL Summary Prospectus:

SVOL Website:

VIX Index:

VIX Futures Index:

Interview with Simplify Portfolio Manager, Shailesh Gupta
(Timestamp 17:07 Source: Passive Income Investing Channel)
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[PassiveIncomeInvesting]

Hey buddy! thanks for the shout-out and great job on the video. I also like your recent interview with Jay for the YieldMAX ETFs . I got my own (second Q&A) coming out soon. Cheers

[ykc]

If you can understand how this ETF works, you're a genius. Even though I don't understand it, I put $30, 000 in it. This is the most comprehensive review of SVOL.

[jamesgoodman]

If you wait for a really nice VIX spike, then you can really make a really nice yield and less chance of share price decrease on you.

[peoriaos]

Finally SOLD the last of SVOL after 3 months of successive distribution decreases. Looking at momentum as well, on SA, it looks pretty bad. Adding to IWMI and SPYI and a tiny bit to BTCI and MSTY now. Thanks for those tips.

[Sammy-uvkl]

I’m in big time in JEPQ - not only I’m up about 11 % on it I have collected some really fat dividends over the past few months - what a monster

[TotallyRegWhatelse]

Strategy, bull case, bear case, black swan event, VIX vs VIX short-term futures index... the best intro to SVOL I've watched so far. Manx thx! 🎉 (well, I admit, after the video I did what you recommend - downloading and *reading* the SVOL prospectus 😊).

[michaelmerrill]

I have $21, 500 into this fund. Around 978 shares. I got in when the stock price was around $21.50 and $22.00 per share. I bought this mainly for the income in order to secure my other investments on the short term. However im watching the NAV everyday and i have my stop loss set at $21/per share

[thecryptostrategist]

I remember the days when everyone and his uncle was short VXX and despite Barclays designing a really crappy product that is destined to go to zero, plenty of people got scarred and burned along the way. I would not touch Vol products with any serious capital and never with leverage. I also would not want to be going short Vol right now with plenty of skeletons in the closets of the banking system, which could unexpectedly emerge over the summer. I have a feeling this banking crisis will be a slow moving train wreck. I also think that people would be better placed simply shorting VXX with 0.5-1.0% of their portfolio (no more) on the next spike and forgetting about it. It goes down 50%+ a year and if you can live with the borrow fees, I would go that route over SVOL.

[normansimonsen]

Not for me.

Currently very impressed with the dividends at TLTW LQDW and HYGW.

I did take a position at ARCC.

I appreciate your videos.

[samsamys]

Keep up the good work. Your views will improve soon, don't let go to soon!

[Rob-on-the-go]

Thanks for this video! Since it is now a year old, and one of your core holdings, could you consider doing a short update on the Bull and Bear case?

[peoriaos]

As suspected, they lowered the dividends. Their history seems to indicate they won't return to the 30 cent dividend and thus a dwindling price and dividend. Any thoughts on it? Thanks in advance

[ElliMay]

Isn't the erosion in the NAV attributed to the falling values of the Tbill holdings?

[marcosagosti]

Thanks for the comprehensive review. SVOL short the VIX Futures. In the IB platform the ticker is VIX Jun21'23 for the current front contract. And it changes every month.

[paulsantori]

Great video! Just curious if you have increased your position in SVOL? It’s my third largest position, hasn’t disappointed yet.

[d.s.]

I think the UXKV is a European CUSIP which these funds prefer because the European Options market does Not allow an option to be called early so it adds stability to the fund.
I Loved your review and would really a ppreciate a review of TLTW is you haven't already done so. My main focus on TLTW is risk and does the fund gain when interest rates are dropping from the value of TLT rising?
Thank you

[MindEracer]

Really good video on a complicated asset

[Eaglez]

Recently sold SVOL at a small profit when they changed much of the underlying funds to another Simplify bond type fund. Looked like a nepotism deal to me. Also, if there is a recession and/or the market goes flat or declines by 10 or 20% the volatility will be erratic and the futures for the VIX may have less premium. Frankly, SVOL is not a tested strategy and to me required daily monitoring.

[mchiem]

Wasn’t sure if someone clarified, those VIX futures symbol ‘UXK3’, for the last two characters, should represent the expiration information (month and year of the futures contract). ‘K’ is for month of May, 3 is relative to the year, so ‘3’=2023. Google ‘Futures Months symbol’ for more info. The first two characters, ‘UX’, seems to be specific to Bloomberg naming for the VIX futures, whereas other data provider may be using VX instead.

[bettywarren]

For us non investors....whats the monthly return on $100, 000.00?? Give or take.