SVOL - SVIX: I Actually Like It Now
2024-05-09 21:59:51 ET
Summary
- Short VIX Futures ETF has made changes to its strategy, making it more appealing to risk-averse investors, so I am changing my view from last year.
- The fund now employs hedges against a possible jump in VIX, reducing the risk of a blow-up like in 2018 and 2020.
- SVIX has outperformed the S&P 500, returning 46% in the last 6 months and 190% since the summer of 2022.
Short VIX Futures ETF ( SVIX ) is an interesting ETF that shorts VIX futures. I covered this ETF last year in an article titled SVIX: An Aggressive And Risky Play On VIX and actually rated it a "sell" due to excessively risky nature of the fund at the time but since then the fund made some changes which makes it a lot more palatable for risk-averse investors like myself. In fact, I went ahead and started a small position in my portfolio recently and so far I am happy with the results. Notice how the fund is beating S&P 500 handily in the last 6 months, returning 46% to investors during this period....
SVIX: I Actually Like It Now