"short the SDS and long the IVV. While this is not a risk free arbitrage (unexpectedly low daily volatility could lead to the opposite effect), in the current market this doesn’t seem likely." This is not arbitrage but doubling up: short SDS is effectively double long + long IVV is another long.
The Hidden Cost in Inverse ETFs [View article]
This is not arbitrage but doubling up: short SDS is effectively double long + long IVV is another long.