- SVOL is an ETF that shorts volatility and uses a tail hedge to protect against extreme volatility.
- Due to the lower short allocation and the hedge, it is safer than previous short volatility funds. However, it can still suffer large drawdowns.
- Recently, elevated market volatility is presenting a compelling case to go long SVOL at a low price while securing a large yield.
- I discuss the potential risks but conclude that in the most likely cases, it makes sense to buy it or at least have it on your radar.
For further details see:
Heightened Volatility Makes SVOL A Buy With Big Yields