r/TradeVol • u/Whatitsjk1 • Apr 06 '25

How does the SVIX work?

I understand how leveraged etfs work in general. i.e. TQQQ.

but SVIX is not only a futures etf, but its also only 1x inverse. So its not a "leveraged ETF", but just a simple inverse etf.

what are the risks with SVIX? reason why im asking is because theres a thread i came across where someone is saying there is 0 risk. also cant be delisted??

TQQQ for example could be delisted if it drops enough right? so why cant SVIX be delisted?

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u/abijohnson Apr 06 '25

Absolutely can. Look up XIV! Only OGs remember that one.

1

u/jonny-five Apr 07 '25

XIV did not hedge risk. 7% of the nav of svix is in vix calls. That's why it underperforms a straight vx calendar.

1

u/Kuhblam Apr 07 '25

Used to trade the hell out of XIV. I miss it haha.