VIDEO: Which Volatility Strategy to Choose? XIV, SVXY, ZIV – Aggressive, Conservative?
Every investor has a different level of risk tolerance, and it’s very important that people follow strategies that match up with their personal goals and investing situation. Please enjoy the following video that might help you decide which of our three volatility strategies is right for you. Subscribers will get access to all of them and of course changes can be made over time, but let’s go over a few ways to make the decision a little easier.
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Confused about tactical versus Aggressive. Are they the same?
Vixy and vxx show same results. XIV no longer exists.
To trade tactical what ETF’s would I trade?
Also, to trade combined volatility strategy I would trade both conservative and aggressive?
Thank You
Hey Mark, thanks for the question.
Sorry for the confusion there, the volatility space has undergone a few changes of late as you’ve noticed. So in the past we had 3 volatility strategies and people would choose the one that best fits their risk tolerance level, or trade a combination of them to add diversification. Here’s a basic before and after:
Before Feb 5th:
VTS Conservative Vol (ZIV, Cash, VXZ) – Conservative end of the spectrum
VTS Tactical Volatility (XIV, Cash, VXX) – Positioned in the middle of the risk spectrum
VTS Aggressive Vol (SVXY, Cash, VIXY) – Higher trade frequency, so more aggressive
After Feb 5th:
VTS Conservative Vol – Unchanged
VTS Combined Vol – This is a 50/50 combination of the Conservative + Aggressive which closely matches the performance of the old VTS Tactical Volatility
VTS Aggressive Vol – Unchanged
Due to the termination of XIV I’ve chosen to suspend the VTS Tactical Volatility. Currently there isn’t enough variety in the amount of volatility products out there to replace it with anything. VMIN may have some potential but it’s not ready yet. The VTS Tactical strategy is just suspended though, not cancelled. I’m sure it will be back when things get back to normal and people realize that the volatility space is certainly not going anywhere. It’s just in the process of maturing so we’ll give it time.
* I do want to make clear also, we suffered 0 losses during the Feb 5th event, we were in cash in all our strategies. It wasn’t terminated for that reason, it’s because the tickers are not varied enough currently. I’m a patient investor and we have a full diversified portfolio to focus on 🙂