➡ Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"): armchairincome.link/snow
@arnoldbioursckii6639Ай бұрын
IF the price of SVOL grows 0% in 1 year or 2 or 3, is it not still returning 16%? Is the total return, with these 0 price changes, 16%?
@seandesch41406 ай бұрын
Your credibility is so high . . . As you try to uncover the untold story behind the investments you cover. VERY IMPRESSIVE! Evidently from the top shelf fund managers that agree to get interviewed by you. And you know your stuff with the high level questions you ask. You are Awesome.
@armchairincomechannel6 ай бұрын
Thanks for those very kind words. So far, nobody has dodged a question so I keep asking. A couple of fund managers have declined to be interviewed but I'll keep trying. I have more interviews in the works :)
@CoveredCallETFInvesting6 ай бұрын
SVOL has one of the best stable distributions out there for American funds. I wish more American fund managers would go for stability. Thanks for covering interesting funds like SVOL. 👍🏻
@armchairincomechannel6 ай бұрын
Thanks for your perspective. I know you spend a lot of time studying ETFs!
@Antowan5 ай бұрын
I have had svol for a while now it is 25% of one of my portfolios. This video gave me confidence to keep it in this range while i disversify but also buy significantly more. Great interview again!
@2am_k18 күн бұрын
Tax is like 56%
@rOHRshackartpottery6 ай бұрын
Outstanding interview! I have a large position in SVOL and following it closely. Keep up the great work AI!
@user-wy8ry2ck2w6 ай бұрын
What are the taxes like? Do you pay regular income taxes, short term or long-term capital gains? Thank you.
@armchairincomechannel6 ай бұрын
Most of the distributions are return of capital. On those you pay no income tax but it lowers your cost basis and then you pay capital gains tax upon sale. The rest (a small portion) is ordinary income.
@user-wy8ry2ck2w6 ай бұрын
@@armchairincomechannel thank you
@Danlikescheesteaks6 ай бұрын
Love your no bs interviews! You presented the concerns to him and he explained everything. Really enjoyed that one. I was mildly concerned about the roc, but I can see what he means when explaining it. What helped me not worry too much about was that SVOL’s NAV has remained pretty consistent for over a year now. It’s a complex fund, but it’s been doing it’s job nicely. Looking forward to your coverage of MAXI. I almost forgot about that one
@armchairincomechannel6 ай бұрын
I appreciate that! Thanks for the feedback.
@Steverino706 ай бұрын
Another great interview, interviewing fund managers is one of the best parts of your channel. You stand apart from others on KZfaq which makes watching you a must do for serious investors.
@armchairincomechannel6 ай бұрын
I appreciate your feedback, thank you :) I'm working on more interviews for the coming weeks and months!
@TomDeutsch6 ай бұрын
Nice to have such a thoughtful and hype-free conversation.
@armchairincomechannel6 ай бұрын
Thanks for your feedback. I don’t like hype either 😀
@MStar106 ай бұрын
Wow. Just got right into it. ZERO BS. Love it. You are the best. I wish you covered the Cdn market as well!
@armchairincomechannel6 ай бұрын
Thanks! I don't like small talk either. Too busy for that :) I've tried investing in Singapore, Australia, and Canada and been burned by exchange rates and the lack of information that's available for the US market. Therefore I've chosen to focus exclusively on the US market. Investing in the US as a foreigner has some tax advantages too.
@MStar106 ай бұрын
@@armchairincomechannel Makes sense. Where are you based out of it? I figured the US for tax purposes.
@armchairincomechannel6 ай бұрын
Was in the US, now in Asia. Planning to go back to Vietnam next month...it's the best value location at the moment.
@citizenoftheyearCC6 ай бұрын
Thank you for asking difficult questions and not the usual softball ones I keep seeing KZfaqrs ask.
@armchairincomechannel6 ай бұрын
Thanks COTY. Larry was happy to answer anything I asked him so he made it easy. I want to know where my investment dollars are going and what they're doing :)
@arnoldbioursckii66393 ай бұрын
Using SVOL instead of money market…does this make financial sense? Idon’t care about risk. THANKS.
@David-lp1mj6 ай бұрын
SVOL has been remarkably consistent over the last year I’ve owned it. Your video reminded me that the NAV was higher in 2021 and hasn’t fully recovered. I suspect it will ratchet down again in the next bear market. Most high yield funds don’t have a mechanism for capital appreciation as that isn’t their objective, so there’s more risk to the downside. Keep up the good work with these videos.
@armchairincomechannel6 ай бұрын
You're right. I wouldn't put too many eggs into 1 basket for that reason. It works well under most market conditions but not all!
@aroy37196 ай бұрын
Today, we saw an SVOL Beta of around .32. This means that if SPX is -10%, we can expect SVOL to be -3.2%. This is excellent. Also, today, SVOL's VIX sensitivity of around -.032. This data indicates that if VIX goes from 14.88 to 80, SVOL will be -16.2%. But, the long VIX Calls will be +28.4%, creating an expected net gain of +12.2% for SVOL. This number is an unrealistic, worst-case scenario because bonds were down today due to inflation jitters. However, in a full-scale deflationary panic sell-off, we can expect bonds to be up sharply, and this would boost SVOL's performance further, probably another 5%.
@armchairincomechannel6 ай бұрын
Thanks for your continued analysis on SVOL. It's one of my top performers.
@MStar106 ай бұрын
Thanks for the detailed info. So in what conditions do you see Svol struggling? And whats the probability of that happening since I appreciate your knowledge on the topic - even an approx probability or guess would be helpful
@armchairincomechannel6 ай бұрын
This is a complex topic and I have some SVOL videos that explain it. In short, SVOL would suffer if there's a massive spike in the VIX. It has call options to address this outcome. Also, it suffers when the VIX is rising in value as it did in 2022. The shape of the VIX futures curve also affects the ability of SVOL to generate income. I can't estimate a probability of the VIX rising or spiking because it's random...can be caused by war, pandemic, economic crisis, etc.
@MStar106 ай бұрын
@@armchairincomechannel Fair enough but your response helps in general. I guess due to the randomness I'll keep it to under 10% of the portfolio. I would love to add more but would first like to see how the strategy actually reacts to a rising vix (when that happens). Thanks again and great content and comments as always!
@aroy37195 ай бұрын
@MStar10 SVOL would suffer losses if VIX futures stayed in Backwardation for months and VIX stayed below 50. In this scenario, the long VIX 50 calls would not get monetized and every month during Backwardation, there would be a loss of around 1.5% assuming 30% short VIX allocation with a 5% month to month VIX differential. This happens very rarely, probably less than 5% of the time.
@fredywenger37856 күн бұрын
Once again thanks for your good work (especially also for SVOL). I have looked your pages and there are very useful information's for investing in US ETF's. But for dividend chasers, there are various shares outside the USA, that pay between 15% and 30% dividends directly. E.G. BWLPG, HAUTO, MPCC (Norway), HZN (Australia), MRF (south Africa), AA4 (GB), PBR (BTA, but also ADR in the USA). I own some shares of the mentioned shares already, but search for diversification (and will buy SVOL thanks of your work). It would be nice, if you would extend your search also to dividend shares outside the USA (I'm sure, you would get al lot more subscribers from outside the USA then).
@armchairincomechannel5 күн бұрын
Thanks for that international list, I'll take a look. I'm not familiar with any of them but am always interested in diversification.
@erinl.43876 ай бұрын
That was a great interview with Mr. Kim taking the time to come on and clarify things. I was concerned because I have a large stake in SVOL and that interview helps with any concerns I had. Thank you.
@armchairincomechannel6 ай бұрын
You’re most welcome. Thanks for letting me know.
@GregK2356 ай бұрын
Thank-you for an informative interview. Good questions that approached issues from different angles made the fund and how it operates more comprehensible.
@armchairincomechannel6 ай бұрын
Glad it was helpful!
@VegasUte5 ай бұрын
I really am enjoying your interviews... I have only watched 4 or 5 (so far) but feel like I have learned something in each of them.
@armchairincomechannel5 ай бұрын
That’s great to hear! My hope is that you learn something new from each video. I learn a lot from doing the research :)
@stevek676 ай бұрын
Your content is top notch! Keep up the great work. One question I wish was asked was how would SVOL perform if we had a 2000, 2008, or 2020 volatility spike? I realize the fund didn't exist at that time but I have no doubt they have tested those scenarios in their model. It would be interesting to see the maximum hit their methodology took during those crazy volatility spikes. I have seen the comment on this video that actually mentions it but I would feel much better hearing it from the fund manager. If there is a follow-up interview I hope that question can be asked.
@armchairincomechannel6 ай бұрын
Hi, and thanks for your feedback. That's an important question and the answer requires a separate video because it's complicated. Basically it's a matter of reviewing a backtesting model and the assumptions of that model. Simplify's position is that the protective VIX calls would minimize or eliminate the loss but I've requested more specific details.
@Will_00016 ай бұрын
Great interview. Thanks to both of you for doing this.
@armchairincomechannel6 ай бұрын
Glad you enjoyed it!
@ndreravi45766 ай бұрын
Thanks for The GUEST ! MR. Larry Kim SOUNDS quite professionally ! Looking at the chart of (SVOL), volume, beta, volatility AND THIS INTERVIEW I decided to keep up accumulating my position ! Thanks again .
@armchairincomechannel6 ай бұрын
I’m already at my full allocation. But am happy to hold.
@scotthirsch34796 ай бұрын
@@armchairincomechannel 5%?
@armchairincomechannel6 ай бұрын
For me, a full allocation is 5%. I diversify more than most people. I don't want any one stock to have the potential to cause me pain if something goes wrong. I'm not looking for the perfect investment (it doesn't exist). I'm looking for many good investments.
@aroy37196 ай бұрын
On Feb 12, VIX was +7.73% while SVOL was -.26%. This gives SVOL a VIX sensitivity of -.033 for this day. Using this data, if VIX spiked from 14 to 80, we can expect SVOL to go -18.8%. But since we have 64K VIX 50 calls, these would be worth $192M or +28.8%. Therefore, in this scenario, SVOL would be +10%.
@armchairincomechannel6 ай бұрын
Thanks for that simple explanation of the call hedge. Much appreciated!
@alwaysright59014 ай бұрын
We need another much needed interview from SVOL because today I found that my broker has categorized this as "Inverse Leveraged Volatility" which was NOT there before today (April 26, 2024). I had recurring fractional shares being bought daily and now Robinhood said they no longer support the automatic recurring daily fractional shares because of the new category this stock is now in. Can you get SVOL back to advise on this, what this all means what has changed and anything else changing, like dividends and its frequency? Usually inverse stocks are short term and not to be held long term. I had this in my Roth for the looong haul!?
@armchairincomechannel4 ай бұрын
Thanks for advising about this. I haven't received anything to this effect from the 3 brokerages I use to hold SVOL (including Schwab), but I will keep an eye out for it. Therefore not sure if its an SVOL thing or a Robinhood thing (I haven't used them).
@alwaysright59014 ай бұрын
@@armchairincomechannel Not sure either on my end but am curious as I'm now unsure if this should be held long term or if their dividends are affected. Appreciate your interviews and vlogs. Hope you can look into this and get SVOL back on.
@g.ajemian49686 ай бұрын
Great job per usual, your work is invaluable to retirees/near retirees
@armchairincomechannel6 ай бұрын
Glad you think so! Thanks for taking the time to let me know :)
@g.ajemian49686 ай бұрын
@@armchairincomechannel one additional question that I have as far as asset allocation, do you put any of your high yielding funds in a Roth type product or is the risk not worth a reward in your opinion not advice thank you
@enricomonesi58566 ай бұрын
As always......Great content
@marklangevin99394 ай бұрын
Thank you Mr. Kim for appearing.
@armchairincomechannel4 ай бұрын
Thanks for watching.
@hansschotterradler37726 ай бұрын
Thanks for this great interview! This cleared up a lot. I wonder how SVOL would have performed in the covid flash crash.
@armchairincomechannel6 ай бұрын
Glad it was helpful :)
@spalover36 ай бұрын
Fantastic video! Thank you for the excellent education!
@armchairincomechannel6 ай бұрын
Glad you enjoyed it!
@hewjkmail32486 ай бұрын
Thank you for a very helpful interview. The more I watch interviews covering topics like ROC and Expense Ratios, the more evident it is to me that there are numerous instances where the financial information for various ETFs can and often is egregiously misinterpreted. You do an excellent job of trying to get at the true facts and an appropriate understanding.
@armchairincomechannel6 ай бұрын
Thanks. These topics can be quite confusing so its easy to jump to conclusions. I've been guilty of it in the past.
@sdrs95a6 ай бұрын
Excellent video explaining ROC!
@armchairincomechannel6 ай бұрын
Much appreciated!
@dougdollison62286 ай бұрын
Very informative interview, but was hoping to hear about their rationale to switch from all treasuries to adding AGGH and LQD ?
@armchairincomechannel6 ай бұрын
It's a good point. That topic is both complicated and fluid (the assets keep changing). I'm still working on getting my hands around it but it will require a dedicated video.
@JAVAR116 ай бұрын
Great and necessary interview! Keep up the great work.
@armchairincomechannel6 ай бұрын
Glad you enjoyed it!
@janoz066 ай бұрын
Thank you so much for an excellent video
@armchairincomechannel6 ай бұрын
Glad you enjoyed it!
@fredywenger37857 күн бұрын
I think about to invest in SVOL... so this video is very interesting for me - thank you! But... I'm still confused and hope for a clarification from you: Snowball systems returns the earnings (dividends) from the capital of the investors. This works well as long as there are new investors. The problem is, that - as soon as there are not enough investors - the snowball system will collapse very fast and... your invested money has gone! SVOL returns "some portions" of the capital to "smooth out fluctuations and keep the payout constant". Questions: Are there some numbers that show how much of the capital (e.g. in %) has been paid for dividends? Is there some institution, that tracks such kind of ETF's? You personally would say, an investment in SVOL is secure? Thanks for a feedback.
@armchairincomechannel6 күн бұрын
Thanks for your feedback. I don't understand your questions but I'll try my best to respond...1/ There's no "snowball", perhaps you're confusing that word with the fund manager, "Simplify". 2/ The "Return of Capital" is a tax treatment, not a return of investor principal. 3/ SVOL retains some of its investment income to pay out in months when income is lower...this is simply to provide more consistent distributions. 4/ Simplify estimates the amount of ROC on its website but the actual number won't be accurate until the end of year financial statements are released. 5/ I don't know what you mean by an "institution", these funds are regulated by the SEC. 6/ I wouldn't use the word "secure" for any investment. You're being rewarded for taking risk. Overall, my only suggestion is to limit investments to stocks and funds that you fully understand and are completely comfortable with.
@fredywenger37856 күн бұрын
@@armchairincomechannel Thank you for taking the time to give detailed feedback! I came across this site because another forum advised against SVOL, "because the investors' capital is paid out as dividends" (that would be a classic pyramid scheme). But thanks to your explanations, everything is now clear to me (I misunderstood that in the video) 🙂 I will now buy SVOL in the near future.
@aroy37195 ай бұрын
With only 12% short May VIX + 70K VIX 50 calls + net long Treasuries, SVOL is positioned to profit if VIX goes above 50. In the best case scenario, we sell all 70K calls for $30, giving us a profit of $210M, which is +28% and after the vol shock subsides, we are +28% + bond income. In the worst-case scenario, the long VIX calls expire worthless, and after the vol shock, we are even + bond income. And, if VIX goes to 80, the current short May VIX will have a temporary drawdown of around 15-20%, and this will be counterbalanced by gains in the bonds and long VIX calls.
@armchairincomechannel5 ай бұрын
Thanks for the analysis as always!
@AnyangU6 ай бұрын
Thanks for another informative video!
@armchairincomechannel6 ай бұрын
You're welcome :)
@enricomonesi58566 ай бұрын
As always......great content......keep it up
@armchairincomechannel6 ай бұрын
Appreciate it! Thanks for watching, as always :)
@normansimonsen12036 ай бұрын
Good interview. I appreciate you doing these videos.
@armchairincomechannel6 ай бұрын
Thanks Norman :)
@normansimonsen12036 ай бұрын
@armchairincomechannel How goes the work on the new studio ?
@nomoreserfs6 ай бұрын
Been waiting for a correction so I can start buying, but it hasn't come yet. 😂 Great show. 👍😎 ROC has a tax benefit.
@armchairincomechannel6 ай бұрын
Thanks for your feedback. Impossible to know when the next correction will come!
@martinguldner39906 ай бұрын
Yes until you want to sell. Return of capital will lower your cost basis so when you finally sell you will pay more capital gains tax.
@armchairincomechannel6 ай бұрын
That's true, it not zero tax. If your capital gains tax rate is lower than your ordinary income tax rate then its a preferable tax treatment. It also gives you flexibility on the timing of the taxable event.
@martinguldner39906 ай бұрын
@@armchairincomechannel since I'm in the 12% US federal tax bracket my qualified dividends are taxed at zero. If I make more money in the future and being a higher tax bracket. If I do eventually sell Investments that had a return of capital I would pay higher tax in the future.
@TheGamingDividend6 ай бұрын
Great interview & great questions! Cheers!
@armchairincomechannel6 ай бұрын
Glad you enjoyed it!
@cyberbrox5Ай бұрын
How does Tax savings get passed on to the buyer of an ETF, will the broker pass that information on to your accountant via a year end statement or does the account need to go through every ETF/ Stock on that statement and determine individually how that line item is taxed?
@armchairincomechannelАй бұрын
The brokerage statement groups the tax categories so that the account doesn't have to do it line by line.
@cyberbrox5Ай бұрын
Thanks, you are one of the best I found on KZfaq so far for high yield content!
@Rob-on-the-go20 күн бұрын
I did notice that SVOL got hit by the big market drop. Was it as bad or worse than you expected? I have not invested in this one yet. Now that a correction has happened, do you still think it is terrific?
@armchairincomechannel19 күн бұрын
It survived the worst possible scenario (huge VIX spike) and its competitors didn't. I'll make a video about it. I still like it.
@seandesch41406 ай бұрын
Future Question for simplify for this fund . . . Why did you change the underlying capital from treasuries to internal simplify funds for SVOL?
@armchairincomechannel6 ай бұрын
Good question. In preliminary discussions they said that it was to deliver a more sustainable yield than short term treasuries (which are good for now but will shrink). Assets like AGGH are complicated and the mix if assets keeps changing. It's a topic I continue to research.
@goose-F166 ай бұрын
serioulsy in depth interview.. save this one for your personal trading.. this will set the standard for future buy write combo funds, well done AI.. this explains the Beta of .45
@armchairincomechannel6 ай бұрын
Thanks for your perspective.
@lucsthilaire2 ай бұрын
As per my 1099 in 2023 there was no roc. I debated this extensively with my broker and Eric at Simplify. What is on the web site isn’t what’s on your 1099.
@armchairincomechannel2 ай бұрын
Yes, I've exchanged some emails on this subject too. He said that 2024 will be more accurate. I would like to see more accuracy and transparency on this.
@seandesch41406 ай бұрын
The largest risk to buying SVOL, a blackswan event, CAN now can be mitigated by buying cheap puts. Incredible return for this investment.
@armchairincomechannel6 ай бұрын
The fund buys VIX calls but those puts would add an extra layer of protection. 👌🏼
@MarktheMechanics6 ай бұрын
I can't wait till your MAXI video. They raised the MAXI fees to 11.18% I can't wait for explanation of how and why they did that. I'm expecting him to say it's an accounting disclosure and not an economic thing? But still 11.8% OMG it hurts my eyes.
@armchairincomechannel6 ай бұрын
You're right...it's a whacky accounting requirement that show the cost of the loan but not the revenue generated by it. It's so confusing they plan to ditch that form of borrowing to make things simpler.
@Seoulsearch6166 ай бұрын
Yet another incredibly informative video, thank you! 👍🏼
@armchairincomechannel6 ай бұрын
Glad it was helpful!
@Chris-ir9sg4 ай бұрын
Very good questions. But isn't part of the reason why SVOL was down in 2022 because the fixed income portion lost value as rates went up?
@armchairincomechannel4 ай бұрын
I don’t know the degree to wash oh that was a factor back in 2022 but I follow your logic. I believe the holdings were more heavily weighted to short term treasuries back then which suffer limited downward pressure from higher rates (vs longer term treasuries). This year, AGGH has been a slight drag on performance but they lightened up on it recently. They’ve changed the holdings several times so it’s hard to track.
@aroy37194 ай бұрын
VIX 16. Bonds are now VIX positive. SVOL'S VIX sensitivity is only .035 . This is all good.
@armchairincomechannel4 ай бұрын
Your updates are appreciated 😀
@peoriaos66276 ай бұрын
Great video as usual! Are you still considering this a good stock to hold? I gathered yes from the video.
@armchairincomechannel6 ай бұрын
I continue to hold SVOL. Thanks for your kind feedback :)
@Reza168886 ай бұрын
Great interview. Thanks!
@armchairincomechannel6 ай бұрын
Glad you enjoyed it! Thanks for watching as always :)
@richardm6546 ай бұрын
You should have asked what happens if the vix spikes above 50 very quickly
@armchairincomechannel6 ай бұрын
That’s an important topic. The option hedge should save the day but I’d like to know more details.
@ezcarlos16 ай бұрын
Great interview getting into the details of a very interesting product.. I have been following your videos and my question regarding svol is the following ; in an episode of sudden pronounced volatility where contango dissappears, how can svol continue with the strategy? For a fund that exists being short the vix and rolling down the curve a sudden volatility blowout would be the ideal time to initiate or add to svol but since contango will have gone away in such a market, what can svol do other than just wait for a positively shaped vix curve. Thanks and regards
@armchairincomechannel6 ай бұрын
Thanks for your feedback. A black swan event would disrupt income as you explained. The VIX calls they buy to hedge such an event would kick in and mitigate the loss. The exact level of protection those calls would deliver is up for debate, hence the risk of the fund. I don’t see the VIX futures curve going into backwardation for anything more than a brief period. U less it’s something dramatically worse than Covid but then we have bigger problems.
@ConcealedCourier4 ай бұрын
Very interested in MAXI.
@armchairincomechannel4 ай бұрын
It's one of my smallest investments of the past 12 months and...the highest return.
@MartinD99995 ай бұрын
Awesome. Thanks 👏🏽
@armchairincomechannel5 ай бұрын
You’re welcome 😀
@BuceGar6 ай бұрын
I love SVOL! If it holds it's price per share, then it will be the majority of my dividend portfolio.
@armchairincomechannel6 ай бұрын
That’s great! (As long as you are diversified of course)
@4thand1336 ай бұрын
Another question about SVOL...with markets at all time highs and VIX low, would that mean buying now would be the equivalent of buying near the top, when there is less chance for gains? Can this fund do well if VIX just starts low and stays low, or does it need falling VIX?
@armchairincomechannel6 ай бұрын
Great question. The optimal time to buy SVOL would be when the VIX is unusually high and likely to head down (doesn't happen often). So you're right, now is not optimal. The timing is mostly about 2 factors, the outright level of the VIX (as you mentioned) and the shape of the VIX futures curve (a bit more complicated). SVOL can do well with a low VIX if the futures curve is favorable (ie in "Contango" or sloping up). It's explained in my previous SVOL update:kzfaq.info/get/bejne/r6dynchzx9uRhHk.html
@saustinredsox6 ай бұрын
Thank you so very much for this superstar etf interview for retirees and those seeking consistent dividends and a little growth (1 to 2%)!!! Do you know of ANY FUND even close to or similar to SVOL's consistent total return? best regards, Steve.
@armchairincomechannel6 ай бұрын
SVOL is the only volatility fund I have so there are no other funds to compare it to directly. If you're asking about simple total return...JEPQ and MAXI have had a good trailing 12 months. MAXI review coming up later this month.
@saustinredsox6 ай бұрын
@@armchairincomechannel Many thanks for the reply! Yes, dividends and simple total return are the goal. It's been a few months since i have reviewed JEPQ and was turned off by the variation in dividend payment BUT was extremely impressed today with their 1 year return at 20%! MAXI is astounding this morning showing a 60% 1 year growth so will be adding that and looking forward to your video. Best regards, Steve.
@armchairincomechannel6 ай бұрын
MAXI numbers are crazy good but it will be a roller coaster so I wouldn't put too much into that one because I need to be able to sleep at night. Bitcoin can drop 50% in a month easily.
@emcardleinvest6 ай бұрын
Very helpful- thank you
@armchairincomechannel6 ай бұрын
You're welcome!
@clayhunter60556 ай бұрын
I have been following this ETF for a minute, I really like where the ETF is going my only question is why is Larry doing this interview sitting on the floor in a corner
@armchairincomechannel6 ай бұрын
He's been a very naughty boy ;) I promise to find a solution for that before the next interview!
@dennistewell66386 ай бұрын
Thanks for the video, I love SVOL
@armchairincomechannel6 ай бұрын
I’m quite fond of it too. Thanks for watching.
@aroy37195 ай бұрын
Today, the short VIX futures position lost money, but the gains from the bonds put us in the green. This is a beautiful thing. Wouldn't you agree? Reply
@armchairincomechannel5 ай бұрын
It's a thing of beauty for sure!
@4thand1336 ай бұрын
Great interview as always. I look forward to your review of MAXI, I've been considering this but the 11% fee was scaring me off. I'm assuming most of that fee (aside from the .85% management fee) is similar to SVOL, in that it's an accounting rule that doesn't actually impact returns?
@armchairincomechannel6 ай бұрын
Good guess! Yes, it's just half the overnight lending equation. The revenue part cancels it out. It's so confusing they're working on ditching it.
@scotthirsch34796 ай бұрын
Curious how this would handle a Black Swan event
@armchairincomechannel6 ай бұрын
They buy protective calls to hedge that risk. At some point I'd like to dive into that subject in more depth but its quite technical. Shailesh says the calls would cover the risk but I'd like to see an independent study.
@Michael-nq4ek6 ай бұрын
Great info. Just what I needed.
@armchairincomechannel6 ай бұрын
Glad to hear it! Thanks for letting me know.
@MitchellSmall6 ай бұрын
Any thoughts on what percentage of the distribution should be reinvested to preserve capital?
@armchairincomechannel6 ай бұрын
I don't have a magic number but generally, the higher the return, the more I reinvest to cover potential hiccups. SVOL is above average for return and risk. At the moment my portfolio is yielding approx 11% so I'm reinvesting approx 3% and spending 8%.
@PhillipLearnTeach3 ай бұрын
how does this compared to YieldMax?
@armchairincomechannel3 ай бұрын
Completely different strategy. Yieldmax writes covered calls on individual stocks. SVOL shorts the VIX.
@timecone572 ай бұрын
Nice interview
@armchairincomechannel2 ай бұрын
Thanks for watching :)
@arnoldbioursckii66392 ай бұрын
Any tax considerations if held in an IRA? Thanks
@Hyperion_40k6 ай бұрын
It’s hard to be bullish on this although it’s an interesting etf for those wanting to make money off volatility. MAXI and FEPI are far more interesting
@armchairincomechannel6 ай бұрын
Depends on your goals. I like all 3. I'm focused on income and SVOL does a nice job of that. For appreciation the other 2 have more upside.
@thomasloftus19506 ай бұрын
bro-- AWESOME CHANNEL-- if u could do a video on MAXI, it would be much appreciated 😎😎😎
@armchairincomechannel6 ай бұрын
Working on a MAXI video to be released later this month :)
@aroy37194 ай бұрын
VIX Spike Performance 3/27-4/19 VIX +46.4% SPX -5.35% TLT -5.86% SVOL -3.65% SVOL/VIX -7.8% VIX sensitivity SVOL continues to outperform both stocks and bonds. VIX sensitivity remains high since stocks and bonds are both VIX-negative.
@armchairincomechannel4 ай бұрын
Thanks for the SVOL analysis...as always :)
@aroy37195 ай бұрын
With 12% short May VIX + 70K long VIX 50 calls + net long US Treasuries, SVOL is now anti-fragile, meaning it will benefit from chaos.
@armchairincomechannel5 ай бұрын
Thanks for the update!
@1wwwandrey6 ай бұрын
Whats better SPYI or SVOL?
@armchairincomechannel6 ай бұрын
Apple pie or cheesecake? They're both quite different. One sells covered calls on the S&P 500 and the other trades VIX futures. I can't compare them. I'd say SPYI comes with less risk because it's assets consist of the S&P 500.
@aroy37195 ай бұрын
With 12% short VIX futures and 70K long VIX 50 calls, there will be a payday if VIX goes over 50.
@armchairincomechannel5 ай бұрын
Goog to know, thanks as always.
@jonathanfoster22636 ай бұрын
doesn't matter to me if its return of capital or regular dividend income. My svol is in a standard IRA and will always just income
@armchairincomechannel6 ай бұрын
Thanks for watching and sharing your perspective :)
@aroy37195 ай бұрын
Today, VIX was +3%, and SVOL was flat. Therefore, today's SVOL's VIX sensitivity was 0.
@armchairincomechannel5 ай бұрын
That's an encouraging sign, thanks for posting these updates :)
@aroy37194 ай бұрын
Recently, a new type of tail risk hedge has been added to SVOL. Currently, we have about 17K contracts in long US 2-year Treasury futures calls. These have a notional value of about $1.7B, which is over 200% of SVOL 's AUM. These will pay off big if the 2 year Treasury futures rise in value above 106. This could be triggered by an SPX market crash. This position is similar to the 80K long VIX 50 calls and therefore adds robustness.
@armchairincomechannel4 ай бұрын
That's somewhat reassuring to hear, thanks for the update!
@jeancarloferreira97706 ай бұрын
Of course i only bought 1 share of MAXI and the price has been going up and up ever since 😂
@armchairincomechannel6 ай бұрын
Technically that's a win!
@MikeAffholder6 ай бұрын
What about spyi
@armchairincomechannel6 ай бұрын
If you’re asking about SPYI Return of Capital, I made a video about that too. Here it is: Return of Capital: Good or Bad? (SPYI ETF 12%) kzfaq.info/get/bejne/nap3aZSe2bDZlJ8.html
@MikeAffholder6 ай бұрын
@@armchairincomechannel thank you
@Rentcollector4 ай бұрын
Huge mer 😢
@armchairincomechannel4 ай бұрын
Management expense ratio is 0.50%. That's not "Huge". If you watch the video, at 10:40 Larry explains the interest expense that makes the fees look high.
@dpragain6 ай бұрын
Does this mean that they borrowed money to keep the fund going?
@armchairincomechannel6 ай бұрын
Not really, at least not in the sense of "running out of money". SVOL trades futures and uses treasuries as collateral. The percentage of collateral required changes and if it increases significantly, they use Repurchase Agreements to augment their collateral. These are overnight loans for very short term liquidity. This is common for futures traders. The value of the futures contracts never exceeds the value of the fund's portfolio. It's a great question because futures are both complicated and confusing!
@dpragain6 ай бұрын
@@armchairincomechannel thanks for the explanation!
@ndreravi45766 ай бұрын
Thanks for reply ! clear and understanding !
@karanbalchandani30294 ай бұрын
@armchairincomechannel - Excellent video. I am new to investing and was researching about this ETF that trades VIX futures. Thank you for providing further clarity. I currently hold SPYI & QQQI, would you advise to consider SVOL? Any feedback will be highly appreciated.
@armchairincomechannel4 ай бұрын
Only if you fully understand the mechanics of it and the risk. The protective calls haven't been tested in the real world.