SVOL: Tactical Buy To Collect High-Yield Income From Market Volatility

Simplify Volatility Premium ETF offers a 21% yield by capturing options premiums from shorting VIX futures, with a tactical Buy rating maintained. SVOL is best used as a tactical tool and portfolio diversifier, not a buy-and-hold income investment, due to its sensitivity to market volatility spikes. The ETF has delivered a 17.5% total return at NAV over the past year and over 9% annualized since inception, with solid monthly distributions.

Key risks include daily rebalancing, short-term investment horizon, borrowing risk, and reliance on active fund management to navigate volatility.

I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security.