2024-03-14 10:26:29 ET
Summary
- SVOL is a complex ETF that uses the volatility index, not stocks, as a primary driver of returns and cash distribution.
- The fund aims to generate gains by assuming a short position on VIX futures contracts, but this also exposes it to potential losses.
- SVOL offers steady income through cash distributions and the potential for non-equity-related returns, but its complexity may not justify the potential benefits.
I have recently written an article on the AGF U.S. market Neutral Anti-Beta Fund ( BTAL ) because, as a diversified multi-asset investor, I am fascinated with strategies that help me generate (or try to generate) superior risk-adjusted returns. One of my readers then put the Simplify Volatility Premium ETF ( SVOL ) on my radar as a potential alternative to better diversify portfolio risk away from a traditional equity-only approach....
Read the full article on Seeking Alpha
For further details see:
SVOL: Enough Complexity, Not Enough Benefits