The Importance of Long Volatility in Portfolio Construction

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A short VIX fund is essentially long the stock market, so it's highly correlated with the stock market. What you are getting is just some income, which is going to be taxable at ordinary income rates. You would have to have a much different kind of portfolio for this to be useful. The person who has done the most work in connection with this program is our friend Alexei.

In this episode we answer emails from Javier, Heath and Joao. We discuss Simplify's short VIX ETF, "SVOL", and the difficulties of investing in volatility, the anomalous circumstances of 2022 and how it affected treasury bonds, and a bit about taxation in Brazil (about which I really know nothing).

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional link:

Simplify's SVOL ETF: SVOL Simplify Volatility Premium ETF | Simplify

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