17% Monthly Dividend ETF - Is SVOL the Best for Monthly Income?
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- čas přidán 6. 07. 2023
- 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.
/ dividendbull
#dividendinvesting #dividends #dividendstocks
I own 106 shares and gotten paid $34 a month for the past 15 months
That good bro . I hope to invest in to svol untell I’m making 20K a mouth
That is 17.48% yearly, counting the todays value of $22.88 per share.
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.
What I really appreciate about your channel is the fact that many of your videos are still relevant years later. You’re a solid reference in terms of understanding income investing, while not “bashing” or discrediting other forms of investments. I always do my own research, but I thank you for the hard work and valuable content 👏
^^^ this
You almost look like Bernadette from The Big Bang Theory.
The one with that mousy and annoying voice?
Great video as always! I’m currently earning about $73 per month from SVOL and I’m reinvesting the dividends. I appreciate it’s a young fund and I keep a close eye on it while reaping the current benefits.
The SVOL dividend has been surprisingly consistent recently.
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.
My hubby and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. Haha.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@arthurworld9768 Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.>
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@@arthurworld9768 Impressive, i’ll most definitely check her out. I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.
I opened a small position (50 shares) to "test drive" it. It's part of a large portfolio I hold. I will add to it or liquidate it based on its performance.
SVOL makes up 10% of my portfolio!
Excellent video and summary. I own, looking to add more when VIX spikes.
Love the channel, definitely wait for you to cover an ETF before I buy 😂
very valuable content, thanks for your effort
You are a prince for sharing so much good detail. Thanks...
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 didn't become financially independent till I was in my mid 40s after having a major financial setback during the covid , Thank God i'm now on my feet . In addition to buying my second house, I'm also making money on a monthly basis through passive income, and I've also met some of my goals. I really hope this motivates someone to know that it doesn't matter if you don't have any of these things yet; no matter your age, you can start today. Investing can help you change your future!
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.
yes that is smart. I realized after blowing up my account in SVIX that you always need to buy those far out dated options just in case for insurance. I keep smaller position sizes now but need to start doing this with shorting UVXY.
@@Fighter4Street please never short uvxy, long svix has capped risk and you won't get the shares called away from you in a volatility spike, also svix has less leverage
I’ve been on board with svol since Oct of 2022.. this is a absolutely brilliant etf.. 1/5 of our portfolio as of today
Does SVOL offer a DRIP?
Wow! That's a lot in one position! Best of luck to you.
@@peoriaos6627 Well, he started it at the right time, you need to get into this fund when VIX is over 30 to maximize your return.
@@peoriaos6627I’m up 22%… so it’s working well man
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.
they only track .2-.3x short vix futures, so its price moves should mimic .2-.3x the old XIV fund. additionally, they hold 50 strike VIX calls so the most they can loose is what they would loose if vix spikes to 50, so its a lot safer than svix or other short volatility holdings
@@lieutenantpi
Also it doesn't short the first 2 months of vix futures like most of the others do, it is short 5th and 6th month which is much safer (gives it more time to recover losses)
Great review - please do HIGH next!
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
you know that "short vol" means when market is plummeting, VIX is shooting up, therefore "short vol" gets poked in the arse, right? The entire video talks about SVOL's uncertainty during a bad market due to it being too young... This fund is supposed to do well during bull and flat markets, but the risk is very uncertain for down markets, especially "flash-crashes", so I'm leaving this comment as a word of caution in case you think this fund is a "protection" for potential crashes, which it is totally not... However, if you meant that you are buying SVOL specifically when volatility spikes, then it is a different story.
Question. Are any monthly dividend stocks "qualified" dividends? I cannot find information on this.
I'm holding small position, waiting for a spike in VIX before going in hard. Right now it's higher risk BC VIX at lows.
VIX can stay low for a long time (its long term average is 14) , look what it did in 2017.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Maria Reyes.
wow.. amazing to see others who trade with Maria Reyes, i'm currently on my 5th trade with her and my portfolio has grown tremendously.
I invest with Maria Reyes too, she charges a 20%commission on profit made after every trading session which is fair compare to the effort she put in to make huge profits.
As a first time investor I started trading with her, with just a thousand bucks. my portfolio is worth much more that now within just weeks of trading with her.
With the consistent weekly profits I'm getting investing with Maria Reyes, there's no doubt she is the most reliable in the market. such a genius
she often interacts on Telegrams, using the user below.
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.
Buy it after it loses value following a VIX spike.
holding it in my roth and have been happy
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.
Agree. We really need to see how much principal it loses in extreme VIX scenarios to see if it's worth long term investment.
SVOL is a different animal, it doesn't short the front 2 months of vix futures like XIV did. It's short 5th and 6th month which makes it much less susceptible to 'volpocalypse'.
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
I will put it on my watchlist.
And watch it carefully
nice one
Thank you for these great videos.
Own it
hi can you evaluate UAN?
Bought 25 shares as a toe-dip to see what the water is like...
I did the same thing
Same
Dear @DividendBull, Long time listener, first time caller. What do you think about various BDC picks like ARCC, HTGC, CSWC and others putting massive stock dilution on their latest proxy votes? How will this effect our returns and stock prices? Can you address this with a video please?
@DividendBull. Only a very naive person would believe this is thel real dividend bull channel owner.
Thoughts a year later?
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.
I’m heavily invested in svol but I also hedge 10% against it in case of price drops.
Instead of a 10% hedge you could instead reduce your holdings and diversify into other stocks/etf.
Hedging against svol is essentially hoping chaos happens in the markets.
You will most likely get paid well when it happens but until then it's wasted premiums.
Svol is only about 6% of my portfolio ... not high enough to warrant a protective put.
Having said that i do take about half it's dividend and put (no pun intended) into another etf ... schd this month.
Prefer Jepi. 🎉
Sounds like when the VIX spikes
time to buy SVOL
Cool cool cool
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.
Have over 300 shares bought 5 months ago and been dripping it. Including dividends reinvested it’s up 14.8% in 5 months.
@iptvclub1575 Hell yeah man, glad to hear it.
I 0wn it.
buy this and do covered calls😊
Has anyone a broker in the Netherlands or EU where I can buy these ETFs?
Check *Freedom24* as an EU broker being entitled to offer (non UCITS) US ETF as well. Or open an account at *Interactive Brokers (IB)* (well, IB's fee models are a bit tricky), maybe it's sufficient to have an account at an "introducing broker" of IB like *CapTrader* or *LYNX,* open an account at a broker/bank in *Liechtenstein* or *Switzerland* (although fees on trades and depots are quite high) or... there are many choices.
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
Use a risk management strategy when trading with hard stop losses and clear targets of when to take your profits. Or just buy ETFs every month for long term, similar to saving but it’s rather boring
Scammers usually make the same set of fatal flaws with their attempts. But they are not intelligent enough to realize it.
This thread just screams *scammer alert*
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. CZcams community, am I understanding this correctly?
Hey I was never taught anything about money, I am praying and working to change that. I am 46 no retirement no savings because I made a lot of mistakes when I started investing that I am trying to correct now. Listening to you gives me inspiration and wisdom. I appreciate you.
Could you please PM me that person's name ? I’ve been trying to hire a pro after all it’s what really wealthy people do, they hire more experienced persons to do the job.
She’s sec verified and an ISDA member. Do your research on her.
Found her website easily it was like the frist thing that came up when I searched on her name and also her mail address I will surely touch bases with her to see what's the best step for me to take rn. THANK YOU.
#1. Don't take risks you can't afford
#2. Don't invest more than you can afford
# 3. Don't invest the money of you'll need within 5 years
#4. No one can time the market. If you try, you will fail and loose money..
#5. Remember that if your companies baseline/fundamentals haven't changed then the loss of the stock price WILL go back up.
Thanks for the recommendation, this is a much safer and easier way for me to get back in this volatile market. am 62 years just want to make enough to retire me and family no idea on trading but all i can do is buy
Can you do a video on slg
He can but it will cost you a Patreon subscription.😄
@@gregwessels7205 Seriously?
It has a negative EPS according to Yahoo (I would have verified this with my brokerage, but when market closes everything zeroes out). It has near good balance sheet.
My question for you are you considering owning it?
To all stock holders and banks the way. Your operations are currently with all companies are going to be investigated even portfolio management as you must have approvals by every single portfolio owner to have or be using their portfolios and more to all those that say you know how things work I challenge anyone to fight this issue because I'm about to shut the old world system and stock market and how money is created I'm changing it all
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
Genuinely curious what anyone’s thoughts are on TGIF ETF i have it in Roth and it pays $.07 every week i’ve got it set to Drip and I like how well it compounds. For context this isn’t a position i’m going heavy in just about $300 worth and letting it compound.
It is a waste of time. You could buy a high yielding ETF and set your brokerage to paying you weekly. Same difference.
@@wewhoareabouttodiesaluteyo9303 what brokerage lets you do that mines limited to what i can even Drip
I remember when XIV blew up.
Sadly we can't buy most US ETFs in Germany.
Klar kannst du: Melde dich bei *Interactive Brokers* an (ja, das ist vielleicht ein wenig umständlich), evtl. reicht es auch bei einem der "introducing broker" von IB einen Account zu haben (z.B. CapTrader oder LYNX oder...) oder beim Broker *Freedom24* (darf als europäischer Broker auch US ETF anbieten!), eröffne einen Account bei einem Broker/einer Bank in *Liechtenstein* oder in der *Schweiz* (ja, die greifen höhere Gebühren für Depot und Trades ab)... 🎉 Viele Wege führen nach Rom (zu non UCITS ETF), der eine einfacher, der andere etwas beschwerlicher.
Mit dem Freedom 24 broker geht das.
All Finfluencers pushing SVOL this week….must have been some promo push
Have a great weekend everyone
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.
I had 43 shares of OARK, but I had to pay off a credit card bill.
First...
Like fourth by newest man.
Really? I fail to understand the juvenile mindset that considers that as some sort of accomplishment.
I suppose life is simple for folks still living in their parents basement. 🤣
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
I have my eye on TLTW but am waiting for the next fed increase. We are near the end of rate increases but not there yet.
Powell said at least 2 more increases. But people seem to not believe it.
And it is unlikely that anytime soon we will get the pivot that the irrational bulls are drooling.and dreaming. Not this year nor next.
You talk too fast.
*Clutches knees*
Di-dividends are irrelevant, dividends a-are irrelevant...
No thanks
When the market tanks this fund will drop hard. Not a good fund for long term investors.
I have 1650 shares of tsly.