My Experience Invested in Simplify Volatility Premium ETF (SVOL) for the past 1.3 years.

Core Insights - The article discusses the performance and strategy of Simplify's Volatility Premium ETF (SVOL) since its inception, highlighting the challenges and adjustments made in response to market conditions [1][18][20]. Investment Experience - The total investment in SVOL amounted to approximately US$3,253, with an average purchase price of $21.689 as of August 27, 2024 [3][5]. - As of December 3, 2025, the annualized internal rate of return (XIRR) is reported at -4.45%, with an unrealized capital loss of -19.22% [6]. Dividend Distribution - SVOL has provided monthly dividends, with a 30% withholding tax applied. The annualized yield at cost after tax is approximately 15% [8]. - A detailed table of dividend distributions shows consistent payments, with the highest yield recorded at 11.6% for several months [7]. Strategy Shift - In January 2025, Simplify modified SVOL's strategy to reduce aggressive short-volatility trading and increase diversification and hedging, anticipating a more volatile market environment [21][22]. - The new strategy aims for resilience and capital preservation rather than maximum yield, resulting in a more balanced allocation between income and risk management [25][26]. Performance Comparison - The performance of SVOL is contrasted with SVIX, an inverse VIX-linked ETF, indicating that SVOL has underperformed compared to a pure short VIX product [26][27]. - The article emphasizes the complexity of SVOL's performance due to its mixed strategy, making it harder for investors to understand its returns compared to simpler products like SVIX [28][29]. Future Outlook - The article suggests that the effectiveness of the new strategy will be evaluated over time, particularly in how well it can manage volatility and provide stable returns [34][32]. - The communication and execution of the strategy by Simplify are deemed critical for investor confidence and long-term performance [33].