GraniteShares 1.5x Short NVDA Daily ETF (NVD)

Overview

The GraniteShares 1.5x Short NVDA Daily ETF (NVDS) seeks daily investment results, before fees and expenses, corresponding to one and a half times the inverse ( -1.5x) of the daily performance of NVIDIA Corporation stock. It offers leveraged exposure to the inverse performance of a single stock, targeting sophisticated investors.

Reputation and Reliability

GraniteShares is a relatively newer ETF provider known for its range of leveraged and inverse ETFs. They are considered reliable within the niche segment of leveraged products.

Management Expertise

GraniteShares has a team experienced in managing exchange-traded products, particularly those with complex strategies like leveraged and inverse funds.

Goal

To provide 1.5 times the inverse of the daily performance of NVIDIA Corporation (NVDA) stock.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy to magnify the inverse returns of NVDA on a daily basis. It uses derivatives such as swaps to achieve the desired leverage.

Composition The ETF primarily holds financial instruments designed to deliver the inverse leveraged performance, which may include swap agreements and other derivative contracts tied to NVDA's stock price. It doesn't directly hold NVDA shares.

Market Share: NVDS holds a small market share within the leveraged single-stock ETF category.

Total Net Assets (AUM): 57356668

Key Competitors

• MicroSectors FANG+ Index -3X Inverse Leveraged ETN (BERZ)
• Direxion Daily Semiconductor Bear 3x Shares (SOXS)

Competitive Landscape

The leveraged single-stock ETF market is highly competitive, with several providers offering similar products. NVDS competes with other leveraged and inverse ETFs that target specific sectors or individual stocks. Its advantage lies in its focused exposure to NVDA, while its disadvantage is its higher risk and complexity compared to non-leveraged ETFs. NVDS ETFu2019s market share is much greater than BERZ and SOXS.

Historical Performance: Historical performance is highly dependent on the daily price movements of NVDA. Due to the leveraged and inverse nature, the ETF is prone to significant fluctuations and is not suitable for long-term holding.

Benchmark Comparison: There is no direct benchmark index. Performance is measured against -1.5x the daily performance of NVDA.

Expense Ratio: 0.0115

Average Trading Volume

The average daily trading volume of NVDS is moderate, but this can fluctuate significantly depending on market interest in NVDA.

Bid-Ask Spread

The bid-ask spread can be relatively wide, especially during periods of high volatility, potentially increasing trading costs.

Market Environment Factors

NVDS is affected by factors influencing NVIDIA's stock price, including semiconductor industry trends, technology advancements, and overall market sentiment. Economic indicators and geopolitical events can also have an impact.

Growth Trajectory

The ETF's growth is tied to the demand for inverse leveraged exposure to NVDA. Changes in investment strategy are unlikely due to the ETF's defined objective.

Competitive Edge

NVDS offers a specific and focused tool for investors seeking to profit from short-term declines in NVDA's stock price with a defined level of leverage. Its advantage comes from its direct and transparent exposure to -1.5x the daily returns of NVDA. This precision can attract traders looking for specific hedging or speculative strategies related to this one high-growth stock. However, its leveraged nature makes it inherently riskier compared to non-leveraged ETFs, limiting its appeal to more conservative investors.

Volatility

NVDS is highly volatile due to its leveraged and inverse nature. It experiences magnified price swings compared to NVDA, increasing the risk of significant losses.

Market Risk

The ETF is exposed to the market risk associated with NVDA. Single-stock ETFs like this are more vulnerable to idiosyncratic risks specific to the company. Additionally, compounding effects can erode returns over longer periods due to the daily reset.

Ideal Investor Profile

Active traders and sophisticated investors who understand the risks associated with leveraged and inverse ETFs. Those with a short-term outlook who want to express a bearish view on NVDA's stock.

Market Risk

Not suitable for long-term investors or those with a low-risk tolerance. Best for active traders seeking short-term tactical opportunities.

The GraniteShares 1.5x Short NVDA Daily ETF offers a leveraged inverse exposure to NVIDIA stock, making it a tool for short-term tactical trades. It is designed for sophisticated investors with a high-risk tolerance and a short-term investment horizon. Due to its leveraged nature and daily reset, the ETF experiences high volatility and is prone to significant fluctuations. It's crucial to understand the risks before investing, as compounding effects can significantly impact returns over longer periods. Overall, NVDS is a niche product unsuitable for passive investing.

Data Sources:

• GraniteShares website
• ETF.com
• Yahoo Finance

Disclaimers:

This data is for informational purposes only and should not be considered investment advice. Investing in leveraged and inverse ETFs carries significant risks, including the potential for substantial losses. Consult with a qualified financial advisor before making any investment decisions.