Simplify Volatility Premium ETF

SVOL is a bet that fear tends to be overpriced. The fund sells VIX futures to harvest the volatility risk premium, the persistent gap between the market's implied volatility and what actually plays out, targeting exposure of roughly negative one-fifth to three-tenths of the VIX short-term futures index. That partial short is deliberate: a full inverse position can be wiped out in a volatility spike, so Simplify runs it at lower intensity and spends a small budget on VIX call options as a crash hedge. The payoff shows up as income, paid monthly, which is the main reason people hold it. In calm markets the strategy grinds out yield; when volatility explodes the fund still loses money, just less than an unhedged short would. Simplify Asset Management launched it in 2021.

On MyRWA, SVOL trades tokenized across 1 on-chain venue - see the listings below.