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SVOL is an exceptional ETF that provides impressive income while effectively handling Volmageddon risks. During the VIX’s recent spike, one of the largest in over a decade, SVOL only dropped 6%, whereas similar ETFs fell 25% to 40%. This performance confirms that SVOL’s strategy is reliable, offering high yields without the threat of a black swan event derailing your investment
I review the total return around the 18:00 mark and talk about this. Remember.. the video is "should you invest in SVOL as a dividend investor?". If you are a dividend investor and want to short VIX futures.. be my guest... we can still be friends :)
What's even more impressive is how the price rebounded from the dip. In fact it's slightly higher now than before the volatility spike. I wasn't worried it would crash but worried about if it would quickly rebound or get stuck on a lower price level. I've allocated 1% of my portfolio to it and am now considering increasing that allocation to 2%.
I was buying fractional shares of SVOL until Robinhood stopped that when they classified it as an inverse leveraged volatility fund 🙄 This fund does well when volatility is low and has rebounded after the market traded down. I did hear that we're heading towards another market crash in several months so I hope to buy a little more on the dip and wait for it to rebound again.
I have SVOL as part of a diversified income producing portfolio. It passed a critical litmus test for me recently when the VIX skyrocketed to a nearly all time high; yet, the fund only dropped 6%. It pays 16% with relatively stable share price despite the return of capital you mentioned. Like u said, "all that matters at the end of the day is total return." So if you'ee holding SVOL as part of a well diversified portfolio (which includes different asset classes vs just equities or "businesses" as u put it) and you're also able to reinvest and compound the distributions, it would be challenging to find a better income producing asset. And who cares if the expenses are over 1% if you're consistently receiving roughly 16%?
Keep an eye on the return of capital and watch how the NAV grows or shrinks in the coming years. If you understand what you're investing in and want exposure to what this fund offers, I won't try and argue or convince you otherwise (assuming you watched the whole video). There are many paths that lead to success.
@@DividendGrowthInvesting Yep...I watched the entire video. I thought you did a good job laying out the downside risk(s). And, you're also correct, there are lots of ways to get a similar results; that's why I will never let this holding exceed 5% of my total income portfolio which includes covered call ETFs, CEFs, BFCs, Preferred stocks, CLOs, MLPs, ETNs, REITs, HY Bonds, convertible securities, etc. Love your content because I try to focus about 15% of my overall portfolio on dividend growth so it's helpful to get your perspective. Thanks.
@rlanebigcatdaddy I bought a week before the VIX spike, then bought the day of. I unloaded my initial lot on the way back up. I want to keep my cost basis in newer funds as low as possible.
I actually quite like SVOL and am gradually increasing my allocation as it's track record grows. Total return is the indisputable truth serum, and there is inherent risk in any investment. So far so good with SVOL.
Can't argue with the returns so far. I'm fair in the video when talking about that. Keep an eye on the ROC and just remember to understand what the fund is actually doing with shorting the VIX.
"It's possible to lose a portion or all of an investment". That's true with any investment. I guarantee you Enron or Lehman Brothers didn't provide that disclaimer.
@DividendGrowthInvesting I recently purchased SVOL, though I did it on the day of the spike at $20. As long as I can get income while maintaining NAV, I'm okay.
I’m pretty sure the Return of Capital tag is not a return of ur money but instead similar to FEPI and couple other of these option funds an accounting trick designed to be tax friendly to the investor although once the cost basis of ur shares is down to zero with this, you would begin to be taxed regardless of the designation.
You are investing in 70-75% fixed income with SVOL so all of the income is not derived from selling call options. You wont lose all of your investment when most is not exposed to futures options. Futures are leveraged in that they dont require as much buying power as being long stocks and ETFs. They arent borrowing money per se. Futures are capital efficient.
WBA, VFC, INTC, T, and many others are businesses that produce something, just not dividends or capital gains for their shareholders. SVOL has so far been a better investment than some once popular stocks for dividends.
Very true! Just because a company produces something, it does not mean that it will do well by default and on the flip side, just because something has done well not producing something that it will continue to do well ;)
Appreciate the video as always! I'm only ever holding SVOL in my Roth IRA and I have a stop loss order set up at all times for when they drastically change their holdings or their downside protection is not enough.
By all means don't go rush to sell on behalf of my opinions. I just hope it opens your eyes to the potential risks and downsides of an ETF like this. Understand what your investing in and make the decision that suits your situation and goals.
It's simply an income investing ETF as you said with a total return that is beating the benchmark of the stockmarket. Ill call myself a distribution investor as well as a dividend investor if that's better, but you can't argue with the results.
100% The results speak for themselves. My main thing is the fund methodology but to each their own. If a fund can outperform the market over the long-term (yet to be seen with SVOL), then that is really all that matters.
Yeah 99% of my videos are talking positively about a certain style or investment. I don't usually make videos on what not to do. Glad that you enjoyed the video!
I have a position in SVOL, its not a make or break position though and my total returns are quite good so far. I am not a dividend investor though. That time has passed for me and I am an income investor. All of my holdings are in an IRA so I have dozens of income positions that generate my income for my pending retirement.
100%! If you don't understand it (regardless if its an ETF or a single stock), when the market corrects/crashes, you will likely not have conviction in the investment and will be more likely to sell at a loss.
I got a little pos in svol. Bought around mid 19. Collecting those divvies at the same time have a limit order to sell a little above my cost basis. 😊 winning so far. 😊
Total return since inception beats SP500. Curious what you would want in an ETF. You should do a bit more research to understand how their fees are accounted for as well.
Yeah I talk about that around the 18:00 minute mark. When it comes to the fees, its .50% management fees and .66 other fees. Pretty standard structure but in this case high.
@@DividendGrowthInvesting Total returns are all that matter in the end as the manager of SVOL points out in their review of the fund. Matching the SP500 in total return via income generating dividends is good enough for me.
Recently bought 1200 SCHD 500 DRGO but I do have 35 SVOL in a ROTH just for the helluvit and to clarify your statement, not all of it is coming from the income if there is as 1.2% appreciation, you misled a bit there. That just shows that there isn't any NAV erosion by return of capital........at least until it crashes and burns.
well as long as you understand it, I wouldn't try and convince you otherwise. Like with anything, know your risk tolerance and find a good balance in all things.
I did my best to explain at the beginning of the video that this was my opinion and that you may not agree with it. As you point out, I did not hide my bias/constructive opinions at all. I try and convey my real thoughts when I make my videos and sometimes people agree with them and sometimes people don't agree - but I think that is a good thing. This is a very different style of video as compared to my other videos. I much prefer to make more positive/uplifting style of videos. Thank you for taking the time to watch and share your opinion on the video.
One thing I forgot to mention as positive for the fund is the transparency - you can see all the their holdings at any time. Let's compare with JPMorgan JEPI - as far as I know they use ELNs that are similar to covered calls, but we know nothing about it - it's a black box. And FYI, they sell slightly OTM and that's why their funds get more price appreciation. It is a trade off, let's admit it! slightly OTM calls for a bit less premium. I have both JEPI and JEPQ and I like them too, just saying they don't tell you exactly what they are doing. That's all. GL.
You are absolutely wrong about SVOL. It’s and amazing ETF and recent major spike of volatility was a true testament of its amazing ability to recover from any black swan events. unlike all the other NAV eroding High dividend ETFs. Have you even invested into it before making assumptions? Well I did and it’s kept its NAV best and continues to provide excellent monthly returns. SVOL Rocks!! ❤
The SVOL expense ratio includes the expense ratios of the bond ETFs that they hold their cash in. If you exclude the expenses of the ETFs, the actual expenses of SVOL is probably reasonalbe.
One thing you usually mention is time horizon for needing funds which I dont believe you mentioned here. Within 0-3 years of needing the distribution from SVOL as income seems great. I like you retired early, sales background, and have about 13% allocation to SVOL while still reinvest a portion of the distribution.
Hi jake, i am 54 planning to work 6 more years retire at 60, currently investing 100 daily ,33 %schd 34% vym 33% dgro. Should keep investing in all or just invest in schd 50% dgro 50%?
It depends on how much income you need in 6 years. I think for your time horizon, you could dial back the % in DGRO and focus more on SCHD/VYM and look to add a high dividend ETF like JEPQ in the coming years. Make sure you are maxing out your tax advantaged accounts first and I think you are controlling what you can control.
Only thing missing in this video is that you did not show the actual income of each ETF for 2023 and 2024. The income graph plus the price appreciation are eye openers of which ETF have performed better plus both have rebounded from the recent decline but SVOL did have a steeper decline from July 31s to Aug 5th, the Monday two weeks ago that scared a lot of people.
Hey as long as you understand why you're doing it and understand what the fund does. To each their own and at the very least, it could be a very good learning experience for you. Investing is not all about theoretical knowledge, but rather gaining real practical experience.
@@DividendGrowthInvesting I know what it is doing (in theory)and I want to see what sort of return it brings. I can afford to lose the 50$ experiment if it tanks and see it as a learning tool. I would not dump big money in it because that's not what it's for.
I'm an investor with a primary focus on growing dividends. With that as my core I add small allocations to other things, such as being short VIX futures. Shorting VIX futures is a very interesting approach because realized volatility is nearly always less that expected volatility. That's like taking candy from babies! BUT... not always. The problem, and the reason why previous short VIX funds have always failed, is that *sometimes* realized volatility is *MUCH* higher than expected. (Imagine that cute little baby turning into a very mad, very large fire breathing dragon when you steal his candy!) The key to success in shorting VIX futures, if there is a way to succeed, is to handle surprise volatility. SVOL claims they can and will. Maybe so. I'm willing to risk a pittance to find out.
Long shot for an answer but why not. What are your thoughts of having a bond etf (BND) in a taxable brokerage account? What are some of the things you see and and have experienced with this? Anyone have any suggestions?
Nothing wrong with it if that supports your goals. It would be more ideal in a tax advantaged account like a Roth IRA. You just don’t get the best tax treatment with it
Great video! Would you be able to do a video on GPIX and GPIQ? These are Goldman Sachs version of JEPI and JEPQ. ishares also has a JEPI competitor called BALI. I think it would make another great video!
It survived the worst one day spike in the VIX in history (Japan carry trade crash), didn't go to "zero". If you're adverse to risk, then sure, stay away. I have no problem earning 15% - risk v reward.
Can you make a video of Ronald Read the janitor who have a 8 million dollars dividend portfolio this story is very inspirational and I hope you take a look and make a video about this janitor thanks
it looks like a hybrid of JEPI/JEPQ/DIVO. The expense ratio is on the higher end. At first glance it looks "reasonable", but at first glance, I'd much prefer to stick with JEPQ. I may dive into it later in more detail.
I currently have SVOL. I have been thinking of selling my shares of SVOL and buy SPYI and QQQI. What would be the advantage of SPYI and QQQI over SVOL? Besides one has more yield over the other.
So, if we use your logic then all funds that have folks running them are in question? So, the 2 funds at Vanguard Wellesley and others are somehow not a good thing? They have been around for decades. The same goes for other groups. So, I find it odd that you have issues with a fund that is managed. Also, other funds own other funds to comprise their fund are those also in question? Why should a fund that looks at other vehicles to obtain their wealth be questionable? We see funds that look at oil, orange, pork bellies, etc which are based on futures. Aren't vehicles that do this questionable if the ones looking at VIX are questionable as well? I feel that having SVOL as a part of your investment not to be anymore riskier than owning QQQ, SPY, or others. But hey, that's me. If the Dark Swawn event happens like it did back in 2000 and 2009 being in stocks will be a disaster. Along with being in real estate and many of the other vehicles that folks feel are safe.
No hate :) Just sharing my opinions on it. I only see positive videos on this ETF. I hate group think and hope more people see both sides. Thanks for watching!
Your video is a masterpiece. Although we can practically not buy this ETF in Germany, active ETFs are also becoming increasingly popular here. Beware of such products. Beware of NAV Erosion.
Not all ETFs like this have NAV erosion (and I'm uncertain with SVOL in this case so I'm not saying that it does). I think more options will become available in Germany in the future. Viele Gruesse!!
Noticed that you didn't mention that it has a Morningstar rating of 5 stars.....and Dividends are not magic....but this doesn't give dividends.....how many times did you say this??
I mentioned towards the end of the video that I say dividend out of habit but that in this case it is a distribution. Kudos to you for recognizing that!
He did not mention lots of good stuff about the fund - he was negative from start to end. A fund that beats S&P on total return since inception! No more comments :)
There are several TH-camrs who are praising this etf to their audience and many of them are buying this fund without doing their due diligence. Thanks for reviewing this fund and giving your thoughts. I wouldn't touch this either.
Group think is real! Yeah to each their own. I just think its important to look at this a bit more critically than blindly jumping on the bandwagon. Thanks for watching!!
Don't worry about the prospectus "risk" section. All fund prospectus I've read include the risk of loss stuff. That's life in the market. I have a tiny allocation to SVOL because I tend to watch and understand something better if I own it. So far, so good (less than 6 months now). I consider it more of an annuity replacement (pay money, get income) rather than an "investment." I don't expect it to increase in value or to increase its distributions by any significant amount. But if it holds up for a few years I might allocate a few percent (likely never more than 5%) of my assets to SVOL just to get more income while the other stuff continues to grow.
Yeah the legal jargon is always vague and wordy for a reason. I think as long as you are responsible (like with anything) and want exposure to what they are offering, more power to ya! I just think most people are really unaware of what they are actually investing in with SVOL.
Love your insights!! Im tired of hearing of SVOL! So much click bait out there, but your stuff is what i will listen to most. Thanks for all your education and info. Schd and dgro for the win!
Thanks! Yeah... Group think on youtube is rampant... People might not agree with me.. but I had to share what I really thought about it... I much prefer the simple path to wealth with dividend investing SCHD/DGRO!
Thanks for watching!
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they delete the exact information - you only see now Total Distribution and the dates - hmmm interesting
SVOL is an exceptional ETF that provides impressive income while effectively handling Volmageddon risks. During the VIX’s recent spike, one of the largest in over a decade, SVOL only dropped 6%, whereas similar ETFs fell 25% to 40%. This performance confirms that SVOL’s strategy is reliable, offering high yields without the threat of a black swan event derailing your investment
I review the total return around the 18:00 mark and talk about this. Remember.. the video is "should you invest in SVOL as a dividend investor?". If you are a dividend investor and want to short VIX futures.. be my guest... we can still be friends :)
@@DividendGrowthInvesting😊
What's even more impressive is how the price rebounded from the dip. In fact it's slightly higher now than before the volatility spike. I wasn't worried it would crash but worried about if it would quickly rebound or get stuck on a lower price level. I've allocated 1% of my portfolio to it and am now considering increasing that allocation to 2%.
I was buying fractional shares of SVOL until Robinhood stopped that when they classified it as an inverse leveraged volatility fund 🙄 This fund does well when volatility is low and has rebounded after the market traded down. I did hear that we're heading towards another market crash in several months so I hope to buy a little more on the dip and wait for it to rebound again.
@@alwaysright5901Now you're hearing that the market won't 'crash' in the next few months. In fact, it should keep rising.
I have SVOL as part of a diversified income producing portfolio. It passed a critical litmus test for me recently when the VIX skyrocketed to a nearly all time high; yet, the fund only dropped 6%. It pays 16% with relatively stable share price despite the return of capital you mentioned. Like u said, "all that matters at the end of the day is total return." So if you'ee holding SVOL as part of a well diversified portfolio (which includes different asset classes vs just equities or "businesses" as u put it) and you're also able to reinvest and compound the distributions, it would be challenging to find a better income producing asset. And who cares if the expenses are over 1% if you're consistently receiving roughly 16%?
Keep an eye on the return of capital and watch how the NAV grows or shrinks in the coming years. If you understand what you're investing in and want exposure to what this fund offers, I won't try and argue or convince you otherwise (assuming you watched the whole video). There are many paths that lead to success.
@@DividendGrowthInvesting Yep...I watched the entire video. I thought you did a good job laying out the downside risk(s). And, you're also correct, there are lots of ways to get a similar results; that's why I will never let this holding exceed 5% of my total income portfolio which includes covered call ETFs, CEFs, BFCs, Preferred stocks, CLOs, MLPs, ETNs, REITs, HY Bonds, convertible securities, etc. Love your content because I try to focus about 15% of my overall portfolio on dividend growth so it's helpful to get your perspective. Thanks.
@@rlanebigcatdaddy that 5% limit can really save you if you get unlucky with a single stock.
@rlanebigcatdaddy I bought a week before the VIX spike, then bought the day of. I unloaded my initial lot on the way back up. I want to keep my cost basis in newer funds as low as possible.
I actually quite like SVOL and am gradually increasing my allocation as it's track record grows. Total return is the indisputable truth serum, and there is inherent risk in any investment. So far so good with SVOL.
Can't argue with the returns so far. I'm fair in the video when talking about that. Keep an eye on the ROC and just remember to understand what the fund is actually doing with shorting the VIX.
I ❤ Svol 🎉
Just got it for my Roth, along with ASGI.
"It's possible to lose a portion or all of an investment". That's true with any investment. I guarantee you Enron or Lehman Brothers didn't provide that disclaimer.
Of course! Kodak, JC Penny, and Blockbuster have all entered the chat.
@DividendGrowthInvesting I recently purchased SVOL, though I did it on the day of the spike at $20. As long as I can get income while maintaining NAV, I'm okay.
@@Alphahydro At the end of the day that is all that matters
Thanks for looking out for us! Always appreciate your honest opinion.
People tend to have strong opinions on ETFs like this. I'm glad you got value out of the video. Thanks for watching!
I’m pretty sure the Return of Capital tag is not a return of ur money but instead similar to FEPI and couple other of these option funds an accounting trick designed to be tax friendly to the investor although once the cost basis of ur shares is down to zero with this, you would begin to be taxed regardless of the designation.
You are investing in 70-75% fixed income with SVOL so all of the income is not derived from selling call options. You wont lose all of your investment when most is not exposed to futures options. Futures are leveraged in that they dont require as much buying power as being long stocks and ETFs. They arent borrowing money per se. Futures are capital efficient.
Yeah the odds are likely low. Things can get messy really fast when you use leverage. It's sunny outside until the clouds come and it starts to rain.
Svol is neck and neck with s&p 500 for total return since inception.
WBA, VFC, INTC, T, and many others are businesses that produce something, just not dividends or capital gains for their shareholders. SVOL has so far been a better investment than some once popular stocks for dividends.
Very true! Just because a company produces something, it does not mean that it will do well by default and on the flip side, just because something has done well not producing something that it will continue to do well ;)
Appreciate the video as always! I'm only ever holding SVOL in my Roth IRA and I have a stop loss order set up at all times for when they drastically change their holdings or their downside protection is not enough.
By all means don't go rush to sell on behalf of my opinions. I just hope it opens your eyes to the potential risks and downsides of an ETF like this. Understand what your investing in and make the decision that suits your situation and goals.
It's simply an income investing ETF as you said with a total return that is beating the benchmark of the stockmarket.
Ill call myself a distribution investor as well as a dividend investor if that's better, but you can't argue with the results.
100% The results speak for themselves. My main thing is the fund methodology but to each their own. If a fund can outperform the market over the long-term (yet to be seen with SVOL), then that is really all that matters.
Thank you for the video! I have always appreciated your videos of what to do, it's nice to also see what not to do!
Yeah 99% of my videos are talking positively about a certain style or investment. I don't usually make videos on what not to do. Glad that you enjoyed the video!
I have a position in SVOL, its not a make or break position though and my total returns are quite good so far. I am not a dividend investor though. That time has passed for me and I am an income investor. All of my holdings are in an IRA so I have dozens of income positions that generate my income for my pending retirement.
The important thing is you understand what the fund does and why you are investing in it.
Your channel one of the few that don't blow smoke up out butt. I don't always agree with you but always respect your opinion. Thanks for doing you
fair enough! Thanks for taking the time to watch!
@@DividendGrowthInvesting I ain't say I disagree here lol
Regardless of if you decide to invest in SVOL, never ever invest in something you don’t understand. Thank you for foot stomping this is the beginning
100%! If you don't understand it (regardless if its an ETF or a single stock), when the market corrects/crashes, you will likely not have conviction in the investment and will be more likely to sell at a loss.
I got a little pos in svol. Bought around mid 19. Collecting those divvies at the same time have a limit order to sell a little above my cost basis. 😊 winning so far. 😊
Total return since inception beats SP500. Curious what you would want in an ETF. You should do a bit more research to understand how their fees are accounted for as well.
Yeah I talk about that around the 18:00 minute mark. When it comes to the fees, its .50% management fees and .66 other fees. Pretty standard structure but in this case high.
@@DividendGrowthInvesting Total returns are all that matter in the end as the manager of SVOL points out in their review of the fund. Matching the SP500 in total return via income generating dividends is good enough for me.
@@txbgouldit’s still very new though
What I've noticed watching your channel lately anything over 5% yield and monthly is an automatic bad
Recently bought 1200 SCHD 500 DRGO but I do have 35 SVOL in a ROTH just for the helluvit and to clarify your statement, not all of it is coming from the income if there is as 1.2% appreciation, you misled a bit there. That just shows that there isn't any NAV erosion by return of capital........at least until it crashes and burns.
That is the simple path to wealth with dividend investing using the core and satellite!!! Your core and satellites are in good balance!
@@DividendGrowthInvesting Yea well, guess where I learned it? I''ll give you 3 guesses and the first 2 don't count.
@@BioHorror lol
I hold SVOL and continue to add to my position on market downturns. I've done my due diligence and fully understand what I'm investing in.
well as long as you understand it, I wouldn't try and convince you otherwise. Like with anything, know your risk tolerance and find a good balance in all things.
Jake, i have to say that normally i like your videos but this one was biased and negative from the start.
I did my best to explain at the beginning of the video that this was my opinion and that you may not agree with it. As you point out, I did not hide my bias/constructive opinions at all. I try and convey my real thoughts when I make my videos and sometimes people agree with them and sometimes people don't agree - but I think that is a good thing. This is a very different style of video as compared to my other videos. I much prefer to make more positive/uplifting style of videos. Thank you for taking the time to watch and share your opinion on the video.
I was thinking the same thing.
One thing I forgot to mention as positive for the fund is the transparency - you can see all the their holdings at any time. Let's compare with JPMorgan JEPI - as far as I know they use ELNs that are similar to covered calls, but we know nothing about it - it's a black box. And FYI, they sell slightly OTM and that's why their funds get more price appreciation. It is a trade off, let's admit it! slightly OTM calls for a bit less premium. I have both JEPI and JEPQ and I like them too, just saying they don't tell you exactly what they are doing. That's all. GL.
You are absolutely wrong about SVOL. It’s and amazing ETF and recent major spike of volatility was a true testament of its amazing ability to recover from any black swan events. unlike all the other NAV eroding High dividend ETFs. Have you even invested into it before making assumptions? Well I did and it’s kept its NAV best and continues to provide excellent monthly returns. SVOL Rocks!! ❤
How does shorting the VIX provide downside/volatility protection? Wouldn’t you want long exposure to the VIX?
The SVOL expense ratio includes the expense ratios of the bond ETFs that they hold their cash in. If you exclude the expenses of the ETFs, the actual expenses of SVOL is probably reasonalbe.
One thing you usually mention is time horizon for needing funds which I dont believe you mentioned here. Within 0-3 years of needing the distribution from SVOL as income seems great.
I like you retired early, sales background, and have about 13% allocation to SVOL while still reinvest a portion of the distribution.
Yeah the time horizon piece is very important. I didn't mention it in this video. Good catch!
Thanks for that review! I really like your channel.
Glad you enjoy it!
They lower the amount earned from the options . Protecting the Nav. Is my thought. The price is stable.
definitely want to keep and eye on it
Hi jake, i am 54 planning to work 6 more years retire at 60, currently investing 100 daily ,33 %schd 34% vym 33% dgro.
Should keep investing in all or just invest in schd 50% dgro 50%?
It depends on how much income you need in 6 years. I think for your time horizon, you could dial back the % in DGRO and focus more on SCHD/VYM and look to add a high dividend ETF like JEPQ in the coming years. Make sure you are maxing out your tax advantaged accounts first and I think you are controlling what you can control.
Only thing missing in this video is that you did not show the actual income of each ETF for 2023 and 2024. The income graph plus the price appreciation are eye openers of which ETF have performed better plus both have rebounded from the recent decline but SVOL did have a steeper decline from July 31s to Aug 5th, the Monday two weeks ago that scared a lot of people.
Oh when comparing JEPI, JEPQ, and SVOL. Yeah I just showed the annual cumulative numbers.
I have SVOL to try. Why not? I'll put 50$ in it to see how I feel after a few months. I'm after income and different asset classes.
Hey as long as you understand why you're doing it and understand what the fund does. To each their own and at the very least, it could be a very good learning experience for you. Investing is not all about theoretical knowledge, but rather gaining real practical experience.
@@DividendGrowthInvesting I know what it is doing (in theory)and I want to see what sort of return it brings. I can afford to lose the 50$ experiment if it tanks and see it as a learning tool. I would not dump big money in it because that's not what it's for.
I'm an investor with a primary focus on growing dividends. With that as my core I add small allocations to other things, such as being short VIX futures.
Shorting VIX futures is a very interesting approach because realized volatility is nearly always less that expected volatility. That's like taking candy from babies! BUT... not always. The problem, and the reason why previous short VIX funds have always failed, is that *sometimes* realized volatility is *MUCH* higher than expected. (Imagine that cute little baby turning into a very mad, very large fire breathing dragon when you steal his candy!)
The key to success in shorting VIX futures, if there is a way to succeed, is to handle surprise volatility. SVOL claims they can and will. Maybe so. I'm willing to risk a pittance to find out.
Yeah volatility can work for or against you. I really like Cash Secured Puts and Covered Calls for this.
Long shot for an answer but why not. What are your thoughts of having a bond etf (BND) in a taxable brokerage account? What are some of the things you see and and have experienced with this? Anyone have any suggestions?
Nothing wrong with it if that supports your goals. It would be more ideal in a tax advantaged account like a Roth IRA. You just don’t get the best tax treatment with it
@@DividendGrowthInvesting Thank you for the advice! Appreciate what you do and the channel.
As much as i like the video, on this one i like the comments generated even more. Lots of good stuff on both sides of the fence on this one.
Hey Mike! yeah people have strong opinions on both sides of the aisle.
Great video! Would you be able to do a video on GPIX and GPIQ? These are Goldman Sachs version of JEPI and JEPQ. ishares also has a JEPI competitor called BALI. I think it would make another great video!
I'll check it out!
It survived the worst one day spike in the VIX in history (Japan carry trade crash), didn't go to "zero". If you're adverse to risk, then sure, stay away. I have no problem earning 15% - risk v reward.
Can you make a video of Ronald Read the janitor who have a 8 million dollars dividend portfolio this story is very inspirational and I hope you take a look and make a video about this janitor thanks
Would you ever do a video covering Custodian accounts?
This is an older video, but here I talk about that: th-cam.com/video/jBUAaOoqe5A/w-d-xo.html
Side note.. I sold out of DIS since making the video.
Jake what do you think about TDVI etf with a 7-8% yield distribution? Like to get your take on it
it looks like a hybrid of JEPI/JEPQ/DIVO. The expense ratio is on the higher end. At first glance it looks "reasonable", but at first glance, I'd much prefer to stick with JEPQ. I may dive into it later in more detail.
I currently have SVOL. I have been thinking of selling my shares of SVOL and buy SPYI and QQQI. What would be the advantage of SPYI and QQQI over SVOL? Besides one has more yield over the other.
SVOL is unique. If you want something like this, you don't have much choise.
Good video is jepy and qqqy a similar fund?
very different methodology strategy.
So, if we use your logic then all funds that have folks running them are in question? So, the 2 funds at Vanguard Wellesley and others are somehow not a good thing? They have been around for decades. The same goes for other groups. So, I find it odd that you have issues with a fund that is managed. Also, other funds own other funds to comprise their fund are those also in question? Why should a fund that looks at other vehicles to obtain their wealth be questionable? We see funds that look at oil, orange, pork bellies, etc which are based on futures. Aren't vehicles that do this questionable if the ones looking at VIX are questionable as well? I feel that having SVOL as a part of your investment not to be anymore riskier than owning QQQ, SPY, or others. But hey, that's me. If the Dark Swawn event happens like it did back in 2000 and 2009 being in stocks will be a disaster. Along with being in real estate and many of the other vehicles that folks feel are safe.
Well its the classic active vs passive debate. At the end of the day, it comes down to what you are trying to accomplish with holding any investment.
Jake dishing out some spice here 🔥
No hate :) Just sharing my opinions on it. I only see positive videos on this ETF. I hate group think and hope more people see both sides. Thanks for watching!
@@DividendGrowthInvestinglearn how to think, not what to think ;) (quoting you)
@@19Rinka86 exactly!!!
Is there a way to see how much of the dividend is ROC?
yeah towards the middle/second half I show it
Your video is a masterpiece. Although we can practically not buy this ETF in Germany, active ETFs are also becoming increasingly popular here. Beware of such products. Beware of NAV Erosion.
Not all ETFs like this have NAV erosion (and I'm uncertain with SVOL in this case so I'm not saying that it does). I think more options will become available in Germany in the future. Viele Gruesse!!
Noticed that you didn't mention that it has a Morningstar rating of 5 stars.....and Dividends are not magic....but this doesn't give dividends.....how many times did you say this??
I mentioned towards the end of the video that I say dividend out of habit but that in this case it is a distribution. Kudos to you for recognizing that!
He did not mention lots of good stuff about the fund - he was negative from start to end. A fund that beats S&P on total return since inception! No more comments :)
Darn, you just rained on my parade. Yes, we are still friends 😁Thanks for your perspective.
haha all good!
??? I didn’t really understand anything in this video. Not my kind of etf. Thanks!
lol fair enough
Oh I loved this video…NUSI 😂
lol omg
There are several TH-camrs who are praising this etf to their audience and many of them are buying this fund without doing their due diligence. Thanks for reviewing this fund and giving your thoughts. I wouldn't touch this either.
Group think is real! Yeah to each their own. I just think its important to look at this a bit more critically than blindly jumping on the bandwagon. Thanks for watching!!
@@DividendGrowthInvestingalways my friend. 😎
Don't worry about the prospectus "risk" section. All fund prospectus I've read include the risk of loss stuff. That's life in the market.
I have a tiny allocation to SVOL because I tend to watch and understand something better if I own it. So far, so good (less than 6 months now). I consider it more of an annuity replacement (pay money, get income) rather than an "investment." I don't expect it to increase in value or to increase its distributions by any significant amount. But if it holds up for a few years I might allocate a few percent (likely never more than 5%) of my assets to SVOL just to get more income while the other stuff continues to grow.
Yeah the legal jargon is always vague and wordy for a reason. I think as long as you are responsible (like with anything) and want exposure to what they are offering, more power to ya! I just think most people are really unaware of what they are actually investing in with SVOL.
Simplify is a misnomer. Complify would be a better choice. You said it doesn’t produce anything. I beg to differ. It produces management fees.
lol omg Hey Michael!
34% SCHG, 33%SCHD, 33%O reality income, three holdings that having been doing very well for me. Both in my Roth IRA and Individual account.
That is a lot of Realty income!
With that yield you'll have to have at least 3 million++ invested, 4% is crap.
Yeah, I would do 45% SCHD 45% SCHG and 10% O
Neos and amplify easily interchangeable. Lol
yeah.. :/
🤔 oh yeaahhhh what happened to NUSI
yeah... kicked to the roadside.
You act like you know about stock investing. How about showing us your own real portpolio and see how you did?
huh? I show my portfolio at the start of every video and the link to it is in every video description.
Jake has been showing his entire portfolio and all his moves for over four years now 😂
I'm already laughing before starting this video because i got a svol ad in the beginning. I'm fully expecting you to stomp all over this etf.
lol omg the irony
Don't say NUSI😢
lol :O
$SVOL invests in a derivative of a derivative. As long as the stock market does not have a panic due to recession or WWIII, it will do fine.
Yeah, I'd describe $NUSI as an ex-g/f.
not a huge fan of the holdings, leaning more towards schd
same! I like ETFs that hold companies that actually produce something
thanks, these guys look shady
They need more CLOWNS on this one before they start dropping that dividend yield.
Your funny
:D
Love your insights!! Im tired of hearing of SVOL! So much click bait out there, but your stuff is what i will listen to most. Thanks for all your education and info. Schd and dgro for the win!
Thanks! Yeah... Group think on youtube is rampant... People might not agree with me.. but I had to share what I really thought about it... I much prefer the simple path to wealth with dividend investing SCHD/DGRO!
I don’t get you guys. You could have just left money in Robinhood and make more money from the sweep without even touching it.
@@RAri-rc3to Okay, let me know how that goes for you. Not sure if you understand dividend growth rates. Good luck to you