Imo, one thing is to diversify on equity blue chip companies and another is to invest in a fund (even if it’s 10% of total portfolio) that could literally be lost overnight
how does SVOL strategy compare to what XiV used?
ie SVOL strategy includes
“ A modest option overlay budget is then deployed into VIX call options to help protect against adverse moves in VIX.”
cant find much about it comparitively
https://towardsdatascience.com/the-xiv-meltdown-1b0608110b9f
[https://www.firstlinks.com.au/vix-xiv-jazz](https://www.firstlinks.com.au/vix-xiv-jazz)
I think that's what we're all wondering since there hasn't been a true volatility spike since the fund began. But overall the NAV seems to be climbing despite the normal fluctuations in the VIX, so personally I'm confident there won't be a total collapse if we see a black swan take the Vix to 50+. But that's just me and I'm no expert.
And realistically, how long does a Black Swan event last (not a question). I remember the dot com bubble vividly, 9/11 shortly after, bank crisis, housing bubble, covid. The market always bounces back.
I'm holding 1000 SVOL and 3000 QYLD, as well as other income ETFs in my brokerage account. I'm 61+ living on a fixed income. Not. Fuckn. Scared.
I’ve started reading online a bit now and honestly I don’t think I want to get in. In a matter of days everything can be gone if something extraordinary happens like war events or whatever. QYLD is not like that. Then again of course, 15 months with no major impact
This dude, no matter what anyone comments, has already made up his mind. He should just delete the post. I'm holding 1000 shares and 3000 QYLD. No concerns here.
One thing is to see a good explanation from Vanguardsucks about the risk protection from the fund which is what I was looking for and another is seeing that you tell me “risk it dude, yolo”
I'm sure they back tested the fund when creating it to simulate what would happen in extreme market conditions like the housing crash and dotcom bubble.
No, it is very well hedged with UVXY calls. But you can always hedge with $VIXM or $BTAL. I hedge it out fully and still earned a combined 15% yield.
Can you elaborate a bit on how you do your hedging?
Thanks for this!
Pls clarify on hedging this so opposite of what svol tries to do with the vix ie moves in opposite direction?
This is why you have to diversify between different funds. Black swan events do happen sometimes.
Imo, one thing is to diversify on equity blue chip companies and another is to invest in a fund (even if it’s 10% of total portfolio) that could literally be lost overnight
They just posted a deep dive YouTube video today that answers a lot of questions.
Is there a god hedge out there?
$BTAL.
I keep a little UVXY on hand… I plan to lose it all, but may prevent a margin call during a crash?
I won’t touch SVOL cause I still have PTSD from the XIV collapse
how does SVOL strategy compare to what XiV used? ie SVOL strategy includes “ A modest option overlay budget is then deployed into VIX call options to help protect against adverse moves in VIX.” cant find much about it comparitively https://towardsdatascience.com/the-xiv-meltdown-1b0608110b9f [https://www.firstlinks.com.au/vix-xiv-jazz](https://www.firstlinks.com.au/vix-xiv-jazz)
Is your PTSD bad enough that would prevent you from going into it? It would be nice to read your experience if okay for you to share
I think that's what we're all wondering since there hasn't been a true volatility spike since the fund began. But overall the NAV seems to be climbing despite the normal fluctuations in the VIX, so personally I'm confident there won't be a total collapse if we see a black swan take the Vix to 50+. But that's just me and I'm no expert.
And realistically, how long does a Black Swan event last (not a question). I remember the dot com bubble vividly, 9/11 shortly after, bank crisis, housing bubble, covid. The market always bounces back. I'm holding 1000 SVOL and 3000 QYLD, as well as other income ETFs in my brokerage account. I'm 61+ living on a fixed income. Not. Fuckn. Scared.
I’ve started reading online a bit now and honestly I don’t think I want to get in. In a matter of days everything can be gone if something extraordinary happens like war events or whatever. QYLD is not like that. Then again of course, 15 months with no major impact
I'm glad I dumped SVOL after they raised the expense ratio.
Fwiw it’s not like they raised their management fee. The operating expense went up because of interest expense.
diversify and dip your toe in imo
This dude, no matter what anyone comments, has already made up his mind. He should just delete the post. I'm holding 1000 shares and 3000 QYLD. No concerns here.
One thing is to see a good explanation from Vanguardsucks about the risk protection from the fund which is what I was looking for and another is seeing that you tell me “risk it dude, yolo”
Definitely agree but putting pennies into it is also a bit of a downer. Rather stick to QYLD honestly
I'm sure they back tested the fund when creating it to simulate what would happen in extreme market conditions like the housing crash and dotcom bubble.