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Great content, Hamburger! None of the hubbub scared me and SVOL was going to be my next position, along with AIPI, but it's still nice to see the data.
Well on the Hubbub. I sent them an e-mail. Asked them to come on to explain the roll from their prospective and the over payments. Still going to be covering them, just no skin in the game. It is always good to see the data.
Since 2021, this fund has price decline and distribution decline (~35 cents per month to 34, then 32, 30 and now 28 cents). Trying to understand the upside here
Thanks for the video! I exchanged few emails with Eric and he seems very nice and transparent with what they are doing! BTW, not related to the topic, but looks like RDTE sold another ATM call today and getting really frustrated with their latest decisions.
I will be doing a video on Saturday with their calls. No skin in the game. I have also sent them an e-mail with my concerns about the Roll. No response yet but maybe next week. I don't think everyone understands my concerns on the Roll as they have to pay the shareholders any profits on selling the calls deep calls. That effects the ability to buy the next calls. It is two separate transactions. Its not a clean swap. I have also invited them to the channel again.
I would normally be using this time as an opportunity to buy more SVOL however I already own 4500 shares so I will likely add to my position with GIAX. Did Eric give you a good explanation regarding dropping the monthly dividend by 20 bucks?
0.28 per share. So they VIX that normally averages about 20 dropped to the lowest level for a long time in the mid teens. This has set them back and wanted to get ahead of it. Second was the interest rate cuts again wanting to get ahead of it. They were excited to see the VIX over 20 again so they can start making us more money. Did not guarantee us a raise but its more likely with a higher VIX.
I bought SVOL on april 1 and again on june 8th and june 17th of this year and have 2600 shares (I like even numbers lol). on price I am down $2524. to date or %4.3. However I have made $5435 in distributions. So I am up on total returns by %4.95. I was down on price even more for a while but its gaining over time. SO far I am super pleased. This is the only alternative fund that I have right now. I am researching others though.
My thumbs up won't register, but thanks for the vid. Catching up. Good info to consider on your videos. It gives me a beginning for what to look for for myself.
I’ve been eyeing SVOL. This week I’m buying into ULTY for the dividend, then selling once it recovers, then maybe do the same with MSTY. Rinse and repeat, but SVOL might be something I invest a little into!
Brad, price of SVOL on inception 5/31/2021 is $25.15 and today it is at 21.56. Wondering how to look at this. Is this temporary market price decrease or actual NAV erosion? I also notice price is on continuous decline over the past 3.5 yrs, except for a short period following the inception.
Interesting as we actually talked about that yesterday and how they did not make distributions in the beginning. Giving everyone the sense of higher prices. The same can be said with ZIVB and not making distributions in the beginning. Notice appreciation and NAV stayed together on the left side. Then the had to make the distributions. It is like a lot of funds. They have to make the distributions they have no option to make them. They are not allowed to keep anything for NAV appreciation. Well they could keep it and pay taxes on it.
@@Income_Architect So, if you account for the capital loss due to price decrease, actual dividend yield coming down to around 8% (7.91 to be exact) since inception assuming dividends are *NOT* reinvested. Given the gradual price decrease, question remains how sustainable this going into the future! It will be good if you can confirm this when you talk to Eric next time.
@@SunBlaze-d8y Yeah, you are correct. if you don't reinvest div you get close to 8%, and if you invested divs you get about 10%. However this was trading in 22-23$ range and now that VIX is at 20, SVOL price is little lower, so you can count on another 5-6% appreciation when VIX goes back down. There is still a little NAV erosion and lots of factors can affect future performance of the fund. For ex if we go in crash or big correction and VIX stay elevated for months... We don't have history of that, right? But overall compare this with S&P since inception 5/12/2021. With divs reinvested both are the same about 40% return up to date. BUT a year ago Oct 2023 SVOL was outperforming on total return S&P by 20%!!! As Mr. Brad likes to say - that is the data ))
With incoming administration threatening tariffs and deportations, how will that affect the VIX, markets, and SVOL? I currently own shares and want to round it up to a 1000
What does tariffs and deportations have to do with the vix and do we want a higher vix? We do not have a crystal ball to see what happens. We actually want a high vix something near 20. So does tariffs or deportations cause this?
@Income_Architect just wondering what they will do to the economy in general, and will they create more volatility in the VIX. I like stability, not chaos. Tariffs and deportations could adversely affect the current bull market run.
Again who knows? If you like stability then why SVOL as the higher VIX allows for greater premiums. We want a higher VIX and not a lower stable VIX. What is the correlation between SVOL and the S&P500? Would you be surprised that they are only 80% correlated. So lets cheer on the high VIX and not be scared of it .
Second person today saying did you see this. Then I spend 20 minutes chasing what they say as SVOL did not say that changed it. Thanks for bring it to my attention but I really need details so I don't spend my time chasing things down for people all day.
@@Income_Architect Yeah I saw it under stock analysis first article under svol .I just figured you might of known about it. I know you know the gentlemen who runs the fund
Brad, What broker can i use to adjust the 8% every month? I use Fidelity but they only do 100 % reinvest or the withdraw option. I cannot adjust the withdraw percentage % with Fidelity. Any options or suggestions with the platforms I can use that has this feature ?
@@Income_Architect if you dont mind, how do you feel about high income bond ETFs, currently? A great time in the economic cycle to get in? I'm particularly interested in a Canadian etf named HPYT
I like them if I keep them high more the 8%. You should see some upside on NAV. Wow looked that one up with the rate change I would take a harder look at that one.
I am not allowed to have a CFA. It not a matter of being able to do it. They have rules that forces everyone out. I can get my series 65 but not my series 7. That’s kinda funny as my wife got her series 7 and she has a hard time keeping up with what I’m saying.
@@Income_Architect yes , I’m going to buy zivb as well. Just a slow dca into it. They do different things and I find that they are both good. Long term these seem good. Less than half a percent allotted to each. So not a huge position. Drip the dividends
Truth be told now that I have that VIX tool I was going to start playing with ZIVB. I can see when things are changing get out before Backwardation and collect the distributions. Let it recover as long as it’s in contango.
@@Income_Architect Yeah, but look at entire 2023 and half 2024, with few small spikes VIX was low and that did not hurt the divs?! Don't get me wrong. I like the fund, but I also thought that the rates are the reason of the div drop.
Last interview it came across that way and Eric and I talked about it. He was a little upset that he didn’t but more emphasis on the lower VIX as a total combination of issues.
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This is insightful and highly educational! Thank you for sharing this video and the information you learned while talking with Eric.
Glad it was helpful! I will be talking to Eric again after the first of the year to see the changes to some of the funds.
Thanks for the good word on SVOL. I've got a full position in it and was getting a bit nervous. This video helped.
Glad it helped! I was getting nervous. Eric was straight shooter with me. Can’t ask for more.
Brad is officially my financial advisor
I would go there. I present the data as I see it.
I just put a huge limit order to sell and then saw this…, glad you did this video.
I am glad that Eric and I talked.
Great video Brad, cool to see you have a in with one of my favorites, SVOL!
Yes they have been very open.
Great content, Hamburger! None of the hubbub scared me and SVOL was going to be my next position, along with AIPI, but it's still nice to see the data.
Well on the Hubbub. I sent them an e-mail. Asked them to come on to explain the roll from their prospective and the over payments. Still going to be covering them, just no skin in the game. It is always good to see the data.
Great Video Brad put my mind at ease. Was thinking about getting out.
No problem love to share the data.
Since 2021, this fund has price decline and distribution decline (~35 cents per month to 34, then 32, 30 and now 28 cents). Trying to understand the upside here
Hmm bets the SP500 but if you don't understand it don't invest.
Thanks for the video! I exchanged few emails with Eric and he seems very nice and transparent with what they are doing!
BTW, not related to the topic, but looks like RDTE sold another ATM call today and getting really frustrated with their latest decisions.
I will be doing a video on Saturday with their calls. No skin in the game. I have also sent them an e-mail with my concerns about the Roll. No response yet but maybe next week. I don't think everyone understands my concerns on the Roll as they have to pay the shareholders any profits on selling the calls deep calls. That effects the ability to buy the next calls. It is two separate transactions. Its not a clean swap. I have also invited them to the channel again.
@@Income_Architect yeah, I don’t know how these FLEX options work, but you have very good point. Keep the good work!
Brad, you are the man!!! Fantastic explanation, thank you, you confirmed my thoughts!!! I appreciate you and your videos, keep up the great work!!!!
I appreciate that! Thanks for watching.
Not selling svol either
Great fund.
I would normally be using this time as an opportunity to buy more SVOL however I already own 4500 shares so I will likely add to my position with GIAX. Did Eric give you a good explanation regarding dropping the monthly dividend by 20 bucks?
0.28 per share. So they VIX that normally averages about 20 dropped to the lowest level for a long time in the mid teens. This has set them back and wanted to get ahead of it. Second was the interest rate cuts again wanting to get ahead of it. They were excited to see the VIX over 20 again so they can start making us more money. Did not guarantee us a raise but its more likely with a higher VIX.
Great video Brad! I am holding and why sell and miss out on the dividends?
Good question! Now you see what happens from a historical standpoint. It’s not the first time.
I bought SVOL on april 1 and again on june 8th and june 17th of this year and have 2600 shares (I like even numbers lol). on price I am down $2524. to date or %4.3. However I have made $5435 in distributions. So I am up on total returns by %4.95. I was down on price even more for a while but its gaining over time. SO far I am super pleased. This is the only alternative fund that I have right now. I am researching others though.
It depends on your goals. I like taking 8% annually slightly more the half of the distributions and reinvesting the rest.
My thumbs up won't register, but thanks for the vid. Catching up. Good info to consider on your videos. It gives me a beginning for what to look for for myself.
Glad you like the information. Lots of information out there. I try to show the data with it.
I’ve been eyeing SVOL. This week I’m buying into ULTY for the dividend, then selling once it recovers, then maybe do the same with MSTY. Rinse and repeat, but SVOL might be something I invest a little into!
Totally get that rinse and repeat. Just to much work for us old people. But totally get it.
I would like to buy more but I cant on my current brokerage fund. What brokerages allow the purchase of SVOL ?
I use fidelity as my brokerage.
Look at how much this curve moved.... from 9% backwardation to good ol' contango!
Looks a lot better doesn't.
Thank you
You're welcome
You're welcome
I bought some today.
On my list.
Great video. As the great Warren Buffet once said... “The stock market is a device for transferring money from the impatient to the patient”.
I have been the impatient at times. I like research and the data.
Brad, price of SVOL on inception 5/31/2021 is $25.15 and today it is at 21.56. Wondering how to look at this. Is this temporary market price decrease or actual NAV erosion? I also notice price is on continuous decline over the past 3.5 yrs, except for a short period following the inception.
Interesting as we actually talked about that yesterday and how they did not make distributions in the beginning. Giving everyone the sense of higher prices. The same can be said with ZIVB and not making distributions in the beginning. Notice appreciation and NAV stayed together on the left side. Then the had to make the distributions. It is like a lot of funds. They have to make the distributions they have no option to make them. They are not allowed to keep anything for NAV appreciation. Well they could keep it and pay taxes on it.
@@Income_Architect So, if you account for the capital loss due to price decrease, actual dividend yield coming down to around 8% (7.91 to be exact) since inception assuming dividends are *NOT* reinvested. Given the gradual price decrease, question remains how sustainable this going into the future! It will be good if you can confirm this when you talk to Eric next time.
@@SunBlaze-d8y Yeah, you are correct. if you don't reinvest div you get close to 8%, and if you invested divs you get about 10%. However this was trading in 22-23$ range and now that VIX is at 20, SVOL price is little lower, so you can count on another 5-6% appreciation when VIX goes back down. There is still a little NAV erosion and lots of factors can affect future performance of the fund. For ex if we go in crash or big correction and VIX stay elevated for months... We don't have history of that, right?
But overall compare this with S&P since inception 5/12/2021. With divs reinvested both are the same about 40% return up to date. BUT a year ago Oct 2023 SVOL was outperforming on total return S&P by 20%!!! As Mr. Brad likes to say - that is the data ))
Great questions to ask. Thanks for input. Let’s see what I get out of them.
I have history to 2008 on VIX but SVOL has not been around that long.
I’ll be adding Monday or when it drops a bit
It’s a great alternative.
@@Income_Architect it is one of my 4 core funds in my main pension accounts
Hi Brad, LOVE the video!!! Just sent you mail. Best regards, Steve.
Thanks so much and thanks for the chat. Brad
With incoming administration threatening tariffs and deportations, how will that affect the VIX, markets, and SVOL? I currently own shares and want to round it up to a 1000
What does tariffs and deportations have to do with the vix and do we want a higher vix? We do not have a crystal ball to see what happens. We actually want a high vix something near 20. So does tariffs or deportations cause this?
@Income_Architect just wondering what they will do to the economy in general, and will they create more volatility in the VIX. I like stability, not chaos. Tariffs and deportations could adversely affect the current bull market run.
Again who knows? If you like stability then why SVOL as the higher VIX allows for greater premiums. We want a higher VIX and not a lower stable VIX. What is the correlation between SVOL and the S&P500? Would you be surprised that they are only 80% correlated. So lets cheer on the high VIX and not be scared of it .
Love SVOL. Have a significant position.
I love it to great team there.
Brad did you read the article on seeking alpha about SVOL changing their holdings?
Second person today saying did you see this. Then I spend 20 minutes chasing what they say as SVOL did not say that changed it. Thanks for bring it to my attention but I really need details so I don't spend my time chasing things down for people all day.
@@Income_Architect Yeah I saw it under stock analysis first article under svol .I just figured you might of known about it. I know you know the gentlemen who runs the fund
@frankvullo-f3g Got is and I just made a video on it. I wanted to get to CLO but you are not the only one asking about SVOL.
Brad, What broker can i use to adjust the 8% every month? I use Fidelity but they only do 100 % reinvest or the withdraw option. I cannot adjust the withdraw percentage % with Fidelity. Any options or suggestions with the platforms I can use that has this feature ?
None I do it manually
Same with Charles swab, only manual, is a pain@@Income_Architect
SVOL IS MY PERMANENT HOLDING.
It’s a nice holding in mine also.
@@Income_Architect if you dont mind, how do you feel about high income bond ETFs, currently? A great time in the economic cycle to get in? I'm particularly interested in a Canadian etf named HPYT
I like them if I keep them high more the 8%. You should see some upside on NAV. Wow looked that one up with the rate change I would take a harder look at that one.
Brad, MBA; when will you get your chartered CFA? I think you can do it.
I am not allowed to have a CFA. It not a matter of being able to do it. They have rules that forces everyone out. I can get my series 65 but not my series 7. That’s kinda funny as my wife got her series 7 and she has a hard time keeping up with what I’m saying.
Bought...then selling same shares in 31 days to lower cost basis
I bought more during the dip without giving up a distribution. 👍
I too am staying with SVOL.
Thanks for watching.
I buy SVOL in when the VIX hits 30 and SVOL goes below $20.
Thanks for sharing
Brad you still in this without stop loss?
Why would I not be? Why does everyone want to sell and put everything under the bed.
@@Income_Architect True I have it and didn't know if I should have a stop loss or were still in backwardation
I let them ride and take the income
Yup, as the market improves SVOL would not be a good play. I did start a position in QDTE and RDTE. Will bring in like 1800 a month extra in divs!
Thanks for watching.
I’m not selling either. In fact , anything below 21 and I’m adding
Now you know why the dip.
@@Income_Architect yes , I’m going to buy zivb as well. Just a slow dca into it. They do different things and I find that they are both good. Long term these seem good. Less than half a percent allotted to each. So not a huge position. Drip the dividends
Truth be told now that I have that VIX tool I was going to start playing with ZIVB. I can see when things are changing get out before Backwardation and collect the distributions. Let it recover as long as it’s in contango.
@@Income_Architect I have been buying into ZIVB
I have been buying SVOL below 22 with a plan to sell above 23 or so and repeat.
Sounds like work.
I don't think it's going above 23 again, but you can adjust too.
It might after it’s back in contango. But you’re right we don’t know. I will let everyone know when it’s back in contango.
Still DRIPing SVOL. These things happen from time to time.
100% no need to fear.
Awesome, thanks Brad.
You're welcome!
Not selling either
Its still appears to be a good hold.
“Contago Is Coming” sounds like a movie title. Although nothing is “Guarantied” nor guaranteed, I’m still team SVOL. 😊
yep at the higher VIX we should be good also.
lol, well said sir.
Problem with svol, majority of their income is coming from fixed income, and with interest rates coming down so will their monthly dividends
Not exactly what Eric expressed to me yesterday. We did talk about that. The lower VIX is what has really hurt them.
With decreasing interest rates, AGGH and MBS etfs which SVOL holds is probably going to see NAV appreciation.
@@Income_Architect Yeah, but look at entire 2023 and half 2024, with few small spikes VIX was low and that did not hurt the divs?! Don't get me wrong. I like the fund, but I also thought that the rates are the reason of the div drop.
Great video
Last interview it came across that way and Eric and I talked about it. He was a little upset that he didn’t but more emphasis on the lower VIX as a total combination of issues.