SVOL: Changing Holdings Show An Apparent Failure Of Strategy

  • SVOL's original strategy of shorting the VIX has failed due to sustained high volatility, leading to negative returns and heightened risks for investors. The fund has pivoted to a new, incoherent strategy involving leveraged S&P 500 futures and options, which carries significant downside risks. Current economic and political uncertainties, including the US-China trade conflict and mixed Fed signals, are likely to maintain high volatility levels.