Simplify Volatility Premium ETF

Simplify Volatility Premium ETF (SVOL) is an actively managed fund that aims for about -0.2x to -0.3x the daily return of a short-term VIX futures index, so it tends to gain when expected stock-market swings shrink. Its collateral is mostly Treasury bills and other Simplify ETFs. It pays monthly: a trailing yield of 22.92% as of October 27, 2026. It costs 0.78% a year, and its prospectus says it's meant only for short-term holding.

• Over the year to Oct 27, 2026, SVOL returned +11.5%.
• Its 5-year annualized return was +7.6%.
• Its worst full calendar year was 2022 (-3.2%); its best was 2023 (+22.9%).
• The deepest fall in its price history was 33.5% (Feb 19, 2025 to Apr 8, 2025), recovered by Jul 15, 2026.

As of Jun 30, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (2.05% of net assets), with its inverse exposure coming from 22 swap and futures positions rather than from owning the stocks outright.

The bonds mature in 0.2 years on average (weighted by size), with an average coupon of 0%.

• Over the three months to Jun 30, 2026, investors withdrew a net $61.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +5.61%, +2.43%, +1.99%.

Simplify manages SVOL actively. It aims for roughly -0.2x to -0.3x the daily return of a short-term volatility futures index. The prospectus says the index measures the implied volatility of the S&P 500, which means the size of the price swings that options traders expect. The fund mainly sells VIX futures. These lose value when expected swings shrink and can jump when stocks slide, so the fund gains in calm markets and loses in panics. As of June 30, 2026, it held July and August 2026 VIX futures.

The target resets every day, from one 4 p.m. Eastern NAV (net asset value) calculation to the next. Over longer periods, compounding means results can differ from the target in size and even in direction, especially in choppy markets. Up to 20% of net assets is subject to an options overlay. The fund buys puts and calls on the index or related products to limit damage from extreme volatility. The prospectus says there is no guarantee this will work.

Most of the money sits in collateral. As of June 30, 2026, a Treasury bill due October 20, 2026 equaled 82.0% of net assets. Other Simplify ETFs made up 52.8%, led by Simplify US Equity Income ETF (SPUC) at 14.8%. The fund also borrows through reverse repurchase agreements, shown as a -80.3% position with Morgan Stanley. That is why its holdings add up to more than 100%. Borrowing adds risk. Using affiliated funds also earns Simplify more revenue, which is a conflict of interest.

• SVOL charges 0.78% a year.
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $80 in the first year and $966 over 10 years (assuming a 5% annual return).

The prospectus says the fund resets its inverse volatility exposure daily and is intended only for short-term investment horizons, despite its large monthly payouts.

SVOL launched in May 2021, so it has no record from the 2008 financial crisis or the 2020 COVID crash. In the 2022 bear market it fell 15.5% between January 12 and May 9, 2022, and took 12 months to recover. Its weakest calendar year was 2022, at -4.57%. Its deepest drop came later: 33.5% from February 19 to April 8, 2025. It did not recover until July 15, 2026, about 15 months later. Anyone forced to sell during a drop like that could lock in a steep loss.

The appeal is income: a trailing 12-month yield of 22.92%, paid monthly, as of October 27, 2026. Payouts can change. The expense ratio is 0.78%, or $80 in the first year on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).

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