Simplify Volatility Premium ETF logo

Simplify Volatility Premium ETF (SVOL)

Market Closed
13 Aug, 20:00
ARCA ARCA
$
17. 58
+0.19
+1.09%
$
805.47M Market Cap
1.2% Div Yield
1,005,353 Volume
$ 17.39
Previous Close
Day Range
17.41 17.85
Year Range
13.18 22.69
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SVOL: Portfolio Retreats From Equities After Failed Recovery, But Correction May Reoccur

SVOL: Portfolio Retreats From Equities After Failed Recovery, But Correction May Reoccur

SVOL's portfolio is now more conservative, shifting from leveraged equities to bonds, reducing downside risk in future corrections. The VIX term structure has normalized to contango, allowing SVOL to generate higher premiums and sustain a yield near 20%. Despite improved positioning, I remain speculatively bearish on SVOL due to overvalued US stocks and persistent macroeconomic risks.

Seekingalpha | 1 month ago
SVOL: The Easy Money Has Been Made, Time To Sell (Downgrade)

SVOL: The Easy Money Has Been Made, Time To Sell (Downgrade)

On April 7, I rated the Simplify Volatility Premium ETF (SVOL) a Strong Buy due to extreme market fear and VIX backwardation. The VIX has since normalized, greed is back, and SVOL has rallied, reducing its upside potential and increasing the risk potential. Therefore, I am downgrading SVOL to a Sell. Some parts of SVOL's portfolio have shifted to a more defensive stance, with increased Treasury holdings, reduced equity exposure, and further-dated VIX short positions, signaling caution.

Seekingalpha | 3 months ago
SVOL: Changing Holdings Show An Apparent Failure Of Strategy

SVOL: Changing Holdings Show An Apparent Failure Of Strategy

SVOL's original strategy of shorting the VIX has failed due to sustained high volatility, leading to negative returns and heightened risks for investors. The fund has pivoted to a new, incoherent strategy involving leveraged S&P 500 futures and options, which carries significant downside risks. Current economic and political uncertainties, including the US-China trade conflict and mixed Fed signals, are likely to maintain high volatility levels.

Seekingalpha | 3 months ago
SVOL: Spiking 'VVIX' Points To Extreme Stock Market Uncertainty With Highest Risk Since 2020

SVOL: Spiking 'VVIX' Points To Extreme Stock Market Uncertainty With Highest Risk Since 2020

SVOL is akin to a "risk insurance provider" on the S&P 500. It earns premiums in stable markets, but faces huge losses during significant market drawdowns. SVOL's recent collapse highlights its vulnerability to rapid VIX rises, exacerbated by poor asset management practices. SVOL's high equity exposure and poor risk management exacerbate its losses, making it unsuitable for income-driven retired investors, but conditionally suitable for pro-risk speculators.

Seekingalpha | 4 months ago
3 ETFs to Ride the VIX Surge During Market Volatility

3 ETFs to Ride the VIX Surge During Market Volatility

The Cboe Volatility Index (VIX), commonly known as the fear index, measures the market's expectation of short-term volatility among stocks. Based on S&P 500 index options with near-term expiration dates, the VIX can project 30 days' worth of volatility expectations.

Marketbeat | 4 months ago
SVOL: Low-Quality Holdings Increase Downside Potential Significantly

SVOL: Low-Quality Holdings Increase Downside Potential Significantly

I downgraded the Simplify Volatility Premium ETF to a Strong Sell due to its increased exposure to equities that increases risks and reduces its diversification benefits. SVOL's portfolio shifted drastically from U.S. treasuries and bonds to a significant 53.93% in SPDR® S&P 500® ETF Trust and other equity positions. The fund's addition of SPUC, which performs like a leveraged version of SPY, further increases downside potential.

Seekingalpha | 5 months ago
SVOL: Over 15% Distribution Yield, Interesting Buy If Market Stabilizes

SVOL: Over 15% Distribution Yield, Interesting Buy If Market Stabilizes

The Simplify Volatility Premium ETF trades at a 15.25% yield by selling short-term VIX futures, benefiting from contango but vulnerable during backwardation. SVOL employs tail hedging and invests in adventurous fixed income securities, offering a stable return profile and active creative management. Currently, SVOL has a high S&P 500 exposure and limited VIX futures, making it less efficient for shorting volatility but safer during volatility spikes.

Seekingalpha | 5 months ago
SVOL: Questionable Changes In Holdings Add Too Much Risk (Rating Downgrade)

SVOL: Questionable Changes In Holdings Add Too Much Risk (Rating Downgrade)

Due to recent unpredictable market conditions and significant shifts in SVOL's holdings, I am downgrading SVOL from a Buy to a Hold. SVOL has moved away from bonds and treasuries, adding complex and less predictable ETFs like QIS and SCY, raising concerns about its stability. SVOL's 54% allocation in SPY and its covered call strategy increase its risk and unpredictability, making it less appealing for income investors.

Seekingalpha | 6 months ago
SVOL: Double-Digit Yield And Likely To Outperform

SVOL: Double-Digit Yield And Likely To Outperform

The Simplify Volatility Premium ETF offers a high yield by writing options against the VIX, supported by actively managed core bond holdings. SVOL's strategy includes shorting VIX futures and holding high-quality fixed income securities, aiming for a stable income despite market volatility. Elevated volatility expected in 2025 could benefit SVOL, enhancing its yield and income generation, making it suitable for aggressive income investors.

Seekingalpha | 6 months ago
Market Volatility Ahead? These 3 ETFs Stand Out

Market Volatility Ahead? These 3 ETFs Stand Out

Volatility is an essential but dangerous component of investment. On the one hand, the capacity for the price of a security to swing back and forth around a mean provides investors with opportunities to profit using strategic buys or sells of that security.

Marketbeat | 6 months ago
SVOL: NAV Erosion Is Not The Problem

SVOL: NAV Erosion Is Not The Problem

SVOL's NAV erosion and dividend cuts are expected due to its design. Reinvesting dividends can maintain principal and still capture competitive yields. Despite NAV erosion, SVOL has shown positive total returns and the capability to outperform the S&P 500 and other income funds like JEPI. SVOL's strategy involves shorting VIX futures with treasury bill collateral, leading to inherent NAV erosion.

Seekingalpha | 7 months ago
SVOL: ~15% Monthly Yield That Shouldn't Be Ignored By Passive Income Investors

SVOL: ~15% Monthly Yield That Shouldn't Be Ignored By Passive Income Investors

Option-driven ETFs provide a decent avenue for passive income investors to access high and uncorrelated returns. Yet, in SVOL's case we can talk about introducing an additional layer of diversification as the underlying strategy is quite different from what other common option-driven ETFs apply. Apart from this, SVOL offers ~15% yield and a nice downside protection.

Seekingalpha | 7 months ago
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