2024-07-03 06:23:33 ET
Summary
- SVOL is a top-rated ETF with low volatility and a stable yield of about 16%.
- SVOL is a market observable income play that is highly manageable with known VIX patterns. It is a good portfolio diversifier.
- Investors should be cautious of the rare cases of extreme VIX values that could lead to substantial losses with SVOL, but overall, it remains a strong buy for income investors.
Introduction
I started to accumulate shares of Simplify Volatility Premium ETF ( SVOL ) for my income portfolio about one year ago. With S&P VIX Index ( VIX) staying under 20 for the most part of the past 12 months, it is not surprising that SVOL has become one of my top income holdings. However, as VIX is staying at the lowest level since Covid-19 pandemic, and the macro conditions still appears very uncertain, including the interest rates, inflation, geopolitical conflicts and the US election, this raises a question of whether SVOL remains a solid income play....
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For further details see:
SVOL: A Manageable Super Yielder And Quality Income Diversifier