Would SVOL be a good ETF to hold long term?
Since SVOL has been paying a fairly consistent distribution of 15-16% (likely going down a bit given the fed interest rate cut), would it make sense to use this to replace some S&P 500 funds in the portfolio? Historically, S&P 500 generates about 7-10% return. So if we take out the tax (let's say 1/3 of the return) and the expense ratio (0.5%) from the distribution of SVOL, the net gain would be on par with S&P 500 pre taxed. Therefore, it is reasonable to replace some S&P 500 funds with SVOL and hold it long term (10 or 20 years).
Good idea? Bad idea?
Submitted November 08, 2024 at 04:19AM by bluengreen777 https://ift.tt/PQ8A01K
