17% Monthly Dividend ETF – Is SVOL the Best for Monthly Income?
17% Monthly Dividend ETF – Is SVOL the Best for Monthly Income?
If you search for high-yielding investments using a stock screener and sort the results by high-yield, you’ll no doubt come across one ETF in particular that’s been making a lot of waves in the income investing realm. Today we’re going to be looking at the Simplify Volatility Premium ETF, ticker SVOL. This video is without a doubt my most requested video in this channel’s history, and I can understand why. SVOL is an ETF unlike anything else out there. It’s a first-of-its kind fund that’s also one of the hardest ETFs to understand because it’s an actively managed fund that uses multiple strategies simultaneously to generate its returns. So let’s take a deep dive into SVOL and see if its extremely high dividend is worthy of consideration for people seeking a high monthly income.
For starters, according to Simplify’s website, SVOL seeks to provide investment results, before fees and expenses, that correspond to approximately one-fifth to three-tenths the inverse of the performance of the Cboe Volatility Index (VIX) short-term futures index while also seeking to mitigate extreme volatility. SVOL aims to provide an attractive income stream and source of diversification while seeking to avoid the risks inherent in other income-producing asset classes. The fund’s short VIX position provides investors with optimized exposure for monetizing the premium in the VIX futures market. A modest option overlay budget is then deployed into VIX call options to help protect against adverse moves in VIX.
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Sadly we can’t buy most US ETFs in Germany.
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Do you like any tax free? I’m in three myself. Although the dividend is a little lower, I add a point in my mind since there is no tax.
I will put it on my watchlist.
buy this and do covered calls😊
*Clutches knees*
Di-dividends are irrelevant, dividends a-are irrelevant…
i’ve got SVOL and SARK ETF’s specifically for when the market is plummeting as a way to have some coverage during a bear market
Merrill Edge won’t allow this on their platforms. Jagloads.
The SVOL dividend has been surprisingly consistent recently.
All Finfluencers pushing SVOL this week….must have been some promo push
I must admit,i held svol since 2019 and kept me up float, 1 of my income focused holdings that never took a nose dive
Can you do a video on slg
I cannot really write anything bad about an ETF other than there are ones that yield more than it.
Also, top 50 on a dividend bull video.
You talk too fast.
Own it
one thing worth noting is that they buy VIX calls with the 50 strike, so the most the funds price can dip (assuming the calls cover all of the futures contracts they sold) is however much it would dip if VIX goes to 50, so this fund should avoid the fate of the XIV in that case.
Sounds like when the VIX spikes
time to buy SVOL
What is the possibility of making decent returns for short term investing? I’ve been reading success stories of people that make a total return of upto $75,000 monthly profit from their investments and I’d really love to know how to go about investing to make huge 5figure returns monthly
hi can you evaluate UAN?
Great review – please do HIGH next!
Has anyone a broker in the Netherlands or EU where I can buy these ETFs?
Good summary of the risks and rewards from SVOL. We have a few thousand shares in our portfolio and it has been a good earner, but are cautious about a sudden jump in the VIX as you describe.
I have 1650 shares of tsly.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
I’m heavily invested in svol but I also hedge 10% against it in case of price drops.
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I remember when XIV blew up.
Love the channel, definitely wait for you to cover an ETF before I buy 😂
I own 17 shares of TSLY and am receiving 17.72 this month in dividends. I’m only holding this for a maximum 3-5 years because of it’s high expense ratio of.99%. I’ll stay in while my investment is low.
holding it in my roth and have been happy
Excellent video and summary. I own, looking to add more when VIX spikes.
Prefer Jepi. 🎉
Thank you for these great videos.
Cool cool cool
My question for you are you considering owning it?
SVOL makes up 10% of my portfolio!
You are a prince for sharing so much good detail. Thanks…
Given the track record of previous short VIX etfs (XIV), we need to wait and see how SVOL performs in "volmageddon" environments to truly get an understanding of how it’s strategy will hold up. I’m skeptical that a 0.3% weighted hedge will be enough to compensate from the losses of a roughly 20% short position. I need to wait and see. If we get a VIX spike over 40, and SVOL doesn’t crap the bed too bad, and it recovers with relative consistency, then I’d say SVOL is worth the hype.
nice one
SVOL has been great so far for me… consistent monthly divs and ETF price has gone up since I bought it. My current plan is to push SVOL to be about 15% of my portfolio. You talk about extreme cases in the video like 2008 and 2020… but in reality, everything is Fd in those scenarios.
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I’m loading up on TLTW but as soon as the day comes that SVOL gets beaten down by a massive VIX spike I’ll sell half my TLTW and jump into SVOL
These new etfs I think need time to make self adjustments. After 4-5 years it’ll probably stabilize, divs I’m assuming will be cut a little as time goes on but as long as they’re consistent that’s all I care about. Look at e YLD’s. They did the same thing. Price tanked and divs dropped but are now at least fairly consistent. I think Svol is a good price and payout. I’m looking for 150-200 shares then I’ll wait. About every 10-15 years something crazy happens in the economy so if it proves to be stable I’ll buy more after the fact
I am looking for a income producing hedge on what I believe is an overpriced market. This looks like a good fit for that purpose. Youtube community, am I understanding this correctly?
When the market tanks this fund will drop hard. Not a good fund for long term investors.
The bullish sentiment is justified, we just came out of the bear Market. Both bullish and negative markets have the same high-yield potential; the key is understanding where to seek. I’ve been pursuing aggressive trading through an advisor while diversifying into the stock market. I continue to make money from my investments despite all the temptations around me; $300,000 was made last year.
I have 72 shares I’m going to hold onto and see how it does, might take it up to 100 but I’ll probably stop there and let it drip a while.
Question. Are any monthly dividend stocks "qualified" dividends? I cannot find information on this.
How would you recommend a beginner to start investing into dividend stocks? I hold a healthy but basic collection of ETFs, and I am researching individual dividend stocks based on your methodology. Should I justify spending $400 on Mastercard, for example, and slowly building the individual stocks, even though expensive, over time, until a get a solid roi? Or begin with growth and value ETFs? Kind of stuck in a loop currently between the two options.