SVOL - SVOL: This 16% Yielding Monthly Dividend ETF Is Perfect For One Type Of Investor

2024-07-20 07:00:00 ET

Summary

• High-yield monthly paying dividends are becoming increasingly popular.
• SVOL is a unique strategy ETF that offers a 16% yield, paid monthly.
• SVOL is designed to deliver market-like returns with lower volatility and diversify one's portfolio.
• SVOL uses VIX futures to generate income, but investors should be aware of its high fees, tax inefficiency, and lack of hedging capabilities.
• For those who understand its strategy and limitations and own it in a tax-deferred account, SVOL is a potentially wonderful replacement for some of your stock portfolio.

I love high-yield ETFs, as do many of my readers and members.

ETFs eliminate single-stock risk, such as buying a high-yield dividend aristocrat like Walgreens ( WBA ) and having the wheels fall off.

Recently, I've done deep dives into some of the most popular high-yield monthly ETFs, including JEPI.

• JEPI: The Smart Investor's ETF For Reliable 8% Monthly Yields

And the Nasdaq version, JEPQ.

• JEPQ: This 9% Yielding Monthly Dividend ETF Is Perfect For 2 Kinds Of Investors

Several members and readers have asked me to analyze the Simplify Volatility Premium ETF ( SVOL ).

This 16% yielding monthly paying ETF represents a brand new asset class and thus offers many wonderful benefits.. . on paper....

For further details see: