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Non-Tech : Income Investing
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To: MCsweet who wrote (51734)11/18/2024 6:58:42 PM
From: Elroy  Read Replies (1) of 52115
 
Short volatility funds mint money until a market crash, and then they get wiped out.

Understood.

However, there was the third largest volatility spike of the past 20 years in August of this year, and ZIVB declined, but it didn't get wiped out, and it (amazingly) didn't cut the dividend. Perhaps part of the reason is that it is involved in out months 4 through 7, and volatility in those months "spike" less than the one month.

I don't really know. But my simple view is if it survived one of the top 3 vol spikes of the past 20 years (the other two were Covid and the 2008 financial crisis) it's probably going to survive for a while.

But I get your point.
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