GraniteShares 1.5x Long NVDA Daily ETF (NVDL)

Overview

The GraniteShares 1.5x Long NVDA Daily ETF seeks to provide 1.5 times the daily return of its underlying asset, NVIDIA Corporation (NVDA). It is designed for short-term traders looking to amplify their exposure to the daily price movements of NVIDIA, a leading company in the semiconductor and AI sectors.

Reputation and Reliability

GraniteShares is a relatively new ETF issuer focused on providing specialized and leveraged products. While not as established as larger firms, they aim to offer innovative solutions in the ETF space.

Management Expertise

Information on the specific management team's expertise for this particular ETF is not extensively detailed by the issuer, but GraniteShares as a company focuses on structuring these specific types of financial products.

Goal

To achieve 1.5 times the daily performance of NVIDIA's stock price.

Investment Approach and Strategy

Strategy: This ETF does not track an index. Instead, it uses derivatives (such as options and futures) and other financial instruments to gain leveraged exposure to the daily price changes of NVIDIA.

Composition The ETF's 'composition' is primarily achieved through derivatives and swap agreements designed to replicate the 1.5x daily leveraged return of NVIDIA. It does not directly hold NVIDIA shares in significant quantities for long-term investment.

Market Share: Specific market share data for this highly niche leveraged ETF is not readily available and would fluctuate significantly based on daily trading activity and investor sentiment towards NVDA.

Total Net Assets (AUM):

Key Competitors

• Direxion Daily NVDA Bull 1.5X Shares (NVDU)

Competitive Landscape

The competitive landscape for leveraged NVDA ETFs is limited, with NVDL and NVDU being the primary options. Both ETFs aim to provide amplified daily returns, attracting short-term traders. NVDL's advantage lies in its issuer's focus, while NVDU benefits from a more established provider in the leveraged ETF space. The primary disadvantage for both is the inherent risk of leveraged products, especially over longer holding periods.

Historical Performance: Historical performance data for NVDL is highly volatile and directly tracks 1.5 times the daily price movements of NVDA. Over longer periods, due to the compounding effect of daily rebalancing, performance can deviate significantly from 1.5 times the long-term return of NVDA.

Benchmark Comparison: This ETF does not have a traditional benchmark index. Its performance is measured against its stated objective: 1.5 times the daily return of NVIDIA.

Expense Ratio: 0.75

Average Trading Volume

The average trading volume for GraniteShares 1.5x Long NVDA Daily ETF is typically moderate to high, indicating a good level of liquidity for active traders.

Bid-Ask Spread

The bid-ask spread for GraniteShares 1.5x Long NVDA Daily ETF is generally tight during active trading hours, reflecting its accessibility for frequent buyers and sellers.

Market Environment Factors

The performance of GraniteShares 1.5x Long NVDA Daily ETF is heavily influenced by factors affecting NVIDIA, including semiconductor demand, AI industry growth, chip manufacturing advancements, and broader technology market sentiment. Economic indicators impacting consumer spending and business investment in technology also play a role.

Growth Trajectory

The growth trajectory of NVDL is intrinsically linked to NVIDIA's stock performance and the demand for leveraged exposure to it. Strategy and holdings are dynamic and are adjusted daily to maintain the 1.5x leverage target.

Competitive Edge

GraniteShares 1.5x Long NVDA Daily ETF's competitive edge lies in its specialized offering for traders seeking amplified daily returns on NVIDIA. Its niche focus allows it to cater directly to a specific segment of active investors interested in short-term directional bets on a high-growth technology stock.

Volatility

The ETF exhibits extremely high historical volatility, a direct consequence of its 1.5x daily leverage and its focus on a single, growth-oriented technology stock.

Market Risk

The primary market risk is the significant downside potential associated with leveraged ETFs. If NVIDIA's stock price declines, the ETF will experience a magnified loss. Furthermore, daily rebalancing can lead to 'path dependency' and erosion of value over longer holding periods, even if the underlying asset moves favorably.

Ideal Investor Profile

The ideal investor is an active trader with a high-risk tolerance, a short-term investment horizon, and a strong conviction in NVIDIA's daily price movements. They should fully understand the risks of leveraged products and the potential for significant capital loss.

Market Risk

This ETF is best suited for active traders with a short-term outlook, not for long-term investors or passive index followers due to its leveraged nature and daily rebalancing strategy.

The GraniteShares 1.5x Long NVDA Daily ETF (NVDL) offers amplified daily returns on NVIDIA stock for active traders. It employs leveraged instruments to achieve its objective, making it a high-risk, high-reward product. Its performance is inherently volatile and best suited for short holding periods due to potential compounding effects. Investors must understand the significant risks, including magnified losses and erosion of value over time.

Data Sources:

• GraniteShares Official Website (Hypothetical, as direct access is limited)
• Financial Data Providers (e.g., Bloomberg, Refinitiv, Yahoo Finance - for general ETF characteristics)
• Investment Research Platforms

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. Leveraged ETFs are complex and involve substantial risk of loss. Investors should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.