Keeping svol. One thing you did not mention, when dripping the dividend, the snowball effect decreases the cost basis at an increasing rate. My cost basis has me up over 27 percent in a year and a half and that will increase at an exponential rate. I add to the position whenever we have a spike in vix when the etf is down. And that helps maintain nav. Anyway, I’m keeping it. I’m keeping aggh as well. They do different things. I like multiple different income streams , as well as growth, value, bonds. Smooth that ride out. It provides much better peace of mind. Made 5500 in premium and dividends last week and have another 2 k hitting on Monday. Lots of dividend payers as well as the wheel…
I love Jennifer, I was in a conference in Connecticut where she spoke to the people, very sound human being, there is always this charm with smart, calm and ambitions women
Hi Jacob keep it simple, everyone's want to do it by themselves but can't performer better. If you ain't savvy enough, discuss with a FA. Im with Margaret ann myatt, great woman She's provides options to build on and less hands on for you. it's just smart move to ensure your interest.
The distribution cut was 6%. Plus the NAV has declined about 4% since mid August. The VIX futures curve looks to be in a near-term backwardation, possibly due to the perceived risks from the US elections. I think selling VIX futures is less profitable now and is having a greater impact than the Fed cutting 50 basis points.
The nav erosion isn't coming back right??? So if we have mild nav erosion and relatively high fees plus taxes on distributions,,, long term am I just better off with an index fund again or SCHD???
Me too. Boring is perfect for me. It would be good to know how much of the payout is based on the fixed income vs the VIX options just to better understand what the downside risk actually is.
The short-VIX strategy aims to profit from "roll yield" -- the VIX curve is normally upward sloping, or in "contango". To simplify things, assume stable markets. For example, SVOL might short a 2-month VIX contract, which normally has a higher price than a 1-month VIX contract, which is normally higher in price that spot VIX futures. So as time passes, you roll down the VIX yield curve, and cover at a lower price. Unfortunately because of the Mideast war and the election, the very front of the VIX yield curve is in "backwardation", meaning 1-month VIX futures are more expensive than 2-month VIX futures. So the normal "roll yield" that funds like SVOL try to capture in normal environments is gone. That is possibly another reason for the decline in the SVOL distribution. I suspect when the VIX curve gets back to contango that SVOL will have more to distribute, all things being equal.
It does not really add up. VIX has been higher the past couples months, than earlier this summer. And SVOL gets most it's income from shorting the VIX, not it's treasury holdings. The fed rate dropped half a point(0.5%). That should have had a very minimal effect on this fund, not 7% drop in yield. I think there is more going on here.
it doesn't add up, they've been saying the majority of the income comes from the vix short, not the interest. so using interest as an excuse now doesn't compute
@@dkyrtata6688 I hope so because if they keep cutting it while the Fed continues to cut rates I'll sell. I'd rather have JEPQ or GPIX or so at that point.
Not informative at all. The reason for selling SVOL is because it is, "too boring"; from the #1 favorite, to no exposure at all. And then the TV Preacher plea to get an "inner circle" membership. Your #1 source for nav errosion; bye Adrian !
@@lima4554 don’t do it, you might get lucky but it doesn’t follow the vix. It uses futures Jan 2025 to April 2025, it’s a mid-term futures strategy ^VIXM-IV
Boring is good! I setup a hobby account to play with so that i can get my excitement there. Its like fast cars, bring it to a track to speed. Dont risk it on the road.
Yes they are yielding less on their treasuries but recently the front end of the VIX curve is in backwardation and that means they are losing money on their positions. Not mentioning this tells me you do not understand the fund so it's good thing you sold it
@PassiveIncomeInvesting Thank you Adrian for teaching many of us what is Passive Income is. I will always grateful to you. Does SVOL gets 15% TAX Withhold ?? I have followed your videos and gone through your Tax playlist... What I understand is SVOL have Income, Capital Gain and ROC as their distribution and dont get Tax withheld.. IF I hold it in TFSA account, Can I say it will be Tax Free for me !! ??? Appreciate your response. Thank you.
It’s a cover called ETF so technically it did not lower its dividends man…when its dips into the 21s we buy. Look at the last two years. It’s consistently in the 21 to 22 range and paying $.28-$.32 divs. We have 800 shares max this consistently pays us 220-240 a month and hasn’t missed a beat
ZIVB is much better. 9:43 SVOL is too 'crowded' , the more popular it gets the worse it's gonna be. It's a 'short vol' using vix futures - selling certain futures contracts. The more money 'comes in to' SVOL the MOVE futures contracts it has to sell - BUT are there gonna be 'buyers', is the demand for those futures contracts UNLIMITED ?!
Good Review, thanks! Boring is good! 15% with very controlled risk. I live out of those dividends as a 65 year old retiree. The excitement part in my life does not come from Investing, but from motorcycles...
I has SVOL but sold it a few weeks ago as if i took all the dividends (which is what I want to do), I would have been down over 7k on my investment. I would say the same for my SPYT. Any ideas on one or two that have a stable share price after taking the dividends?
Thanks Adrian. Do you think dividends may be adjusted downward again as interest rates fall further as expected? Should we expect divideds to stabilize once interest hit their lowest point moving forward?
Svol likely needs the actual short term treasuries to post as margin for their short vix futures postions. Vix in backwardation will affect the distributions... esp. if it lasts.
SVOL down over 6% for the year j e p i up over 6% over the year.. leaves me a bit confused.. especially when I took a hit in August and sold it Lost over 5K
Thanks for the update. I’m keeping SVOL as it’s a good,more stable source of income. But my guess is YMAX as it’s now a weekly payor like QDTE. I own both 👍
My take is if I purchased 5000 shares of SVOL in August of 2022 my income has now dropped from $1,600 / month to $1,400 month (or annually from $19,200 to $16,800) - in a period where inflation is easily 8-10%. So my income would be down > 12% and my buying power is further reduced by at least 8%. That is a significant loss in income. Additionally, I would have lost $6,500 in equity. Trying to live off of less is not how to win in retirement. There is every likelihood that the NAV will continue to erode and the distribution will continue to be decreased.
But the nav has stayed in the 21-22 range for 2 years man. The key with this fun is you have to take 30% of the dividend you receive and invest back into svol for retirement and that’s the case with all cover call etfs
After swapping once twice threes time. I'm done and decided I'm all in on YSTL for my RRSP, I'm good with 20% plus growth going forward plus I don't have to worry about currency exchange.
Can you do a breakdown of Simplify's new WUSA fund? I'm curious to hear your take on using AI to pick stocks, and... maybe even interview the fundrunners?
Yo Adrian, you seem to know a lot about income ETFs. I am/was looking for a US AAA+ Corporate 1 to 3 month Bond (similar to what SGOV and BIL are for T Bills). I was looking to compare distribution rates to see if they are worth the theoretical increase in risk. Let me know eh?
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
Keeping svol. One thing you did not mention, when dripping the dividend, the snowball effect decreases the cost basis at an increasing rate. My cost basis has me up over 27 percent in a year and a half and that will increase at an exponential rate. I add to the position whenever we have a spike in vix when the etf is down. And that helps maintain nav. Anyway, I’m keeping it. I’m keeping aggh as well. They do different things. I like multiple different income streams , as well as growth, value, bonds. Smooth that ride out. It provides much better peace of mind. Made 5500 in premium and dividends last week and have another 2 k hitting on Monday. Lots of dividend payers as well as the wheel…
Do you set alerts on vix? How do you know when to buy more svol? I m keeping it as well!
I have a lump sum in my possession, what about aggressive dividends etf to hold now
I already added VOO and QQQM, can you share this firm with me
I love Jennifer, I was in a conference in Connecticut where she spoke to the people, very sound human being, there is always this charm with smart, calm and ambitions women
SVOL is good for retirement portfolios too, great to live off of!
I'll keep SVOL, its yield performing well on the long horizon, i also i have multiple dividends to balance out my portfolio.
Very nice. You understand how to play the game for long term success.
How do you balance out your portfolio effectively, I just keep holding onto popular recommended ETF's.
@@AsandeMonwabisizondiright there with you!
For me VOO 30%, VIG 20%, SCHD 20% and 30% individual stocks. Trying to keep building up the ETFs forever.
Hi Jacob keep it simple, everyone's want to do it by themselves but can't performer better. If you ain't savvy enough, discuss with a FA. Im with Margaret ann myatt, great woman She's provides options to build on and less hands on for you. it's just smart move to ensure your interest.
The distribution cut was 6%. Plus the NAV has declined about 4% since mid August. The VIX futures curve looks to be in a near-term backwardation, possibly due to the perceived risks from the US elections. I think selling VIX futures is less profitable now and is having a greater impact than the Fed cutting 50 basis points.
I think this is the most likely answer. The folks buying the options that SVOL is selling, aren’t willing to pay as much
Agreed. I think blaming lower interest rates is odd.
SVOL makes money selling futures, not selling options. The VIX futures curve near time is not in contango.
Bingo.
The nav erosion isn't coming back right??? So if we have mild nav erosion and relatively high fees plus taxes on distributions,,, long term am I just better off with an index fund again or SCHD???
Keeping SVOL, it is a unique product and its performing well. About 5% of my income ETFs portfolio.
Thanks for the update, and your reasons for selling. I love boring so I'm keeping SVOL for now. The thumbnail was good...it made me click!
Me too. Boring is perfect for me. It would be good to know how much of the payout is based on the fixed income vs the VIX options just to better understand what the downside risk actually is.
lol thanks man :) i had some fun with it . SVOL is a great ETF. no doubt
Man isn't a CFA and it shows.
So what is he missing?
The short-VIX strategy aims to profit from "roll yield" -- the VIX curve is normally upward sloping, or in "contango". To simplify things, assume stable markets. For example, SVOL might short a 2-month VIX contract, which normally has a higher price than a 1-month VIX contract, which is normally higher in price that spot VIX futures. So as time passes, you roll down the VIX yield curve, and cover at a lower price. Unfortunately because of the Mideast war and the election, the very front of the VIX yield curve is in "backwardation", meaning 1-month VIX futures are more expensive than 2-month VIX futures. So the normal "roll yield" that funds like SVOL try to capture in normal environments is gone. That is possibly another reason for the decline in the SVOL distribution. I suspect when the VIX curve gets back to contango that SVOL will have more to distribute, all things being equal.
I always thought if rates go down bonds go up ?
Correct
Bond share price goes up, but bond yields go down
Sticking with it.
It does not really add up. VIX has been higher the past couples months, than earlier this summer. And SVOL gets most it's income from shorting the VIX, not it's treasury holdings. The fed rate dropped half a point(0.5%). That should have had a very minimal effect on this fund, not 7% drop in yield. I think there is more going on here.
yea interest rates going down?
@@PassiveIncomeInvesting SVOL was not yielding 16% because the fed rate was 5%. It gets most it's yield from other things.
it doesn't add up, they've been saying the majority of the income comes from the vix short, not the interest. so using interest as an excuse now doesn't compute
@@GinJ1337 Maybe they reduced the distribution more than they had to so that they don't have to reduce it again as interest rates continue to decline
@@dkyrtata6688 I hope so because if they keep cutting it while the Fed continues to cut rates I'll sell. I'd rather have JEPQ or GPIX or so at that point.
Not informative at all. The reason for selling SVOL is because it is, "too boring"; from the #1 favorite, to no exposure at all. And then the TV Preacher plea to get an "inner circle" membership.
Your #1 source for nav errosion; bye Adrian !
What do you think about ZIVB ? Would you like to get some? Thanks
I like it , 250 shares deep
@@lima4554 don’t do it, you might get lucky but it doesn’t follow the vix. It uses futures Jan 2025 to April 2025, it’s a mid-term futures strategy ^VIXM-IV
I guess you swapped it for QDTE
My guess, all 8n on QDTE or XDTE
Boring is good! I setup a hobby account to play with so that i can get my excitement there. Its like fast cars, bring it to a track to speed. Dont risk it on the road.
Yes they are yielding less on their treasuries but recently the front end of the VIX curve is in backwardation and that means they are losing money on their positions. Not mentioning this tells me you do not understand the fund so it's good thing you sold it
@PassiveIncomeInvesting Thank you Adrian for teaching many of us what is Passive Income is. I will always grateful to you.
Does SVOL gets 15% TAX Withhold ?? I have followed your videos and gone through your Tax playlist... What I understand is SVOL have Income, Capital Gain and ROC as their distribution and dont get Tax withheld.. IF I hold it in TFSA account, Can I say it will be Tax Free for me !! ??? Appreciate your response.
Thank you.
No. U will get 15% withholding tax automatically. Never hold svol in TFSA
No with holding tax in a registered account RIF/lif/rrsp
No, the 15% withholding tax applies to U.S. dividends that the fund earns. So if SVOL does not hold U.S. stocks, it cannot earn U.S. dividends.
It’s a cover called ETF so technically it did not lower its dividends man…when its dips into the 21s we buy. Look at the last two years. It’s consistently in the 21 to 22 range and paying $.28-$.32 divs. We have 800 shares max this consistently pays us 220-240 a month and hasn’t missed a beat
Technically , SVOL is not a covered call etf
Great video Adrian! You mentioned BUCK as part of SVOL. Curious is there any equivalent of BUCK in cad? Thanks
SPLT PREF HBIL SPAY
ZIVB is much better.
9:43 SVOL is too 'crowded' , the more popular it gets the worse it's gonna be. It's a 'short vol' using vix futures - selling certain futures contracts. The more money 'comes in to' SVOL the MOVE futures contracts it has to sell - BUT are there gonna be 'buyers', is the demand for those futures contracts UNLIMITED ?!
Let me guess, you swapped it for qdte?
Hahaha I think he did. I’ll take consistent versus inconsistent.
:)
YMAX
Yes YMAX is better than FEPI or SVOL
Adriano, CRITICAL time to get Shailesh back on don't you think? best regards, Steve.
Good Review, thanks! Boring is good! 15% with very controlled risk. I live out of those dividends as a 65 year old retiree. The excitement part in my life does not come from Investing, but from motorcycles...
Did you switch to RDTE and for a Canadian should that be in rrsp or tfsa or both?
ruclips.net/video/XCAVzeFaFX0/видео.html
You picked RDTE. That's my guess.
The market is in a funny place right now. Im not doing anything just waiting and seeing.
I has SVOL but sold it a few weeks ago as if i took all the dividends (which is what I want to do), I would have been down over 7k on my investment. I would say the same for my SPYT. Any ideas on one or two that have a stable share price after taking the dividends?
SPYT and SVOL definitely fit that criteria
im watching closely for SVOL entry for few weeks now. seems price is closing support level
I understand your poits Adriano, fair enough. I'm curious about how SVOL would work on a taxable account for an expat in terms of taxes.
Thanks Adrian. Do you think dividends may be adjusted downward again as interest rates fall further as expected? Should we expect divideds to stabilize once interest hit their lowest point moving forward?
My guess is you swapped it for YMAX
:)
SVOL is a keep for me.
Will NAV continue being stable?
Svol likely needs the actual short term treasuries to post as margin for their short vix futures postions. Vix in backwardation will affect the distributions... esp. if it lasts.
Why do lower interest rates impact the short term bonds held by SVOL. Isnt it more likely the decline in volatility
because short term bonds pay less when rates get cut . so SVOL collects less income
understood, thanks
As of today, the NAV continue to fall from the high....ouch. Down 4%. Not sure its performance can hold up against the current economic outlook. SELL!
Performance is still good . Check it out on the website
Thanks Adriano! Still own a fair bit.
SVOL down over 6% for the year j e p i up over 6% over the year.. leaves me a bit confused.. especially when I took a hit in August and sold it Lost over 5K
What do you think of JEPI and JEPQ now being available on the TSX for Canadian investors?
Really? Can I put them in my TFSA??
@@dwaynecunningham2164 if they are on the TSX you sure can but them into your TFSA.
Sold it some time ago to switch to XDTE!
I think u swap to ymax
Thanks for the update. I’m keeping SVOL as it’s a good,more stable source of income. But my guess is YMAX as it’s now a weekly payor like QDTE. I own both 👍
My take is if I purchased 5000 shares of SVOL in August of 2022 my income has now dropped from $1,600 / month to $1,400 month (or annually from $19,200 to $16,800) - in a period where inflation is easily 8-10%. So my income would be down > 12% and my buying power is further reduced by at least 8%. That is a significant loss in income. Additionally, I would have lost $6,500 in equity. Trying to live off of less is not how to win in retirement. There is every likelihood that the NAV will continue to erode and the distribution will continue to be decreased.
But the nav has stayed in the 21-22 range for 2 years man. The key with this fun is you have to take 30% of the dividend you receive and invest back into svol for retirement and that’s the case with all cover call etfs
Buffet said he doesn’t invest in something he doesn’t understand… Caveat Emptor 🤑
Boring is good
After swapping once twice threes time. I'm done and decided I'm all in on YSTL for my RRSP, I'm good with 20% plus growth going forward plus I don't have to worry about currency exchange.
NVHE is also good, at around a 23.9 % yield. This an ETF from Harvest.
@@roneinarson6342 I also have this but in my cash account and TFSA!
@@roneinarson6342 Does NVHE erode?
well YTSL is something completely different than SVOL lol
Got my mind on my money
And my money on my mind.
Fepi is the best
25% with out NAV erosion
Fepi has dropped a lot from where I began a position. The only funds that have appreciated for me have been SPYI QQQI ISPY GPIX & GPIQ.
Fixed income equals holding US government debt. US government is broke. Equities seems better choice.
US govt bonds are going lower..
I sold out on SVOL! Second cut since I bought and still came out with a profit. Bought into XDTE with my money!
What is XDTE taxation for US resident?
@Alex-he1ve Stay tuned till next year.
I sold svol I bought msty instead
It is not a problem that the dividend has been reduced from 30 to 28.
The problem is that the capital price is dropping
SCHD
I am keeping and buying it moderately. My biggest instrument
The dividend yield will be back up again this month. Temporary adjustment.
Can you do a breakdown of Simplify's new WUSA fund? I'm curious to hear your take on using AI to pick stocks, and... maybe even interview the fundrunners?
Interesting !
SPYT
Let's all cry about 2 cents. 🤣🤣🤣🤣🤣🤣
Xdte
Yo Adrian, you seem to know a lot about income ETFs. I am/was looking for a US AAA+ Corporate 1 to 3 month Bond (similar to what SGOV and BIL are for T Bills). I was looking to compare distribution rates to see if they are worth the theoretical increase in risk. Let me know eh?
How ya doin? Sly
@@bonanzatime no Habla Espanol.
Ymax
This is the beginning of the end.😂
SOLD THIS CRAP MONTHS AGO WHEN THEY LOWERED THE DIVY THE FIRST TIME
well i would not call something crap with an avg. annual total return of over 12%
Exactly, keep the 12% and wait , what’s wrong with that?
@@shadowgov9721 wait for rates to go lower? when rates go lower they will cut again.. didnt you listen to the video?