AXS 1.25X NVDA Bear Daily ETF (NVDS)

Overview

The AXS 1.25X NVDA Bear Daily ETF (NVDS) seeks daily investment results, before fees and expenses, of 125% of the inverse (or opposite) of the daily performance of NVIDIA Corporation stock. It is designed for sophisticated investors who understand the risks associated with leveraged and inverse ETFs.

Reputation and Reliability

AXS Investments is a relatively new player in the ETF market, so its reputation is still developing. Reliability depends on the consistency of its fund management.

Management Expertise

Information on specific management team expertise is limited but can be found through AXS Investments website.

Goal

To provide daily investment results, before fees and expenses, of 125% of the inverse (or opposite) of the daily performance of NVIDIA Corporation stock.

Investment Approach and Strategy

Strategy: Inverse leveraged ETF targeting the daily performance of NVIDIA Corporation stock.

Composition Primarily holds financial instruments designed to provide inverse leveraged exposure to NVIDIA (NVDA) stock. Specific holdings are not directly disclosed but would include swaps and other derivatives.

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

Total Net Assets (AUM): 22840000

Key Competitors

• TARK US Equity (TARK)
• FDRX US Equity (FDRX)
• QQQ US Equity (QQQ)

Competitive Landscape

The competitive landscape consists of various leveraged and inverse ETFs. NVDS faces competition from other inverse ETFs focusing on technology or specific stocks. Advantages depend on its specific leverage factor and cost structure. Disadvantages include the inherent risks of leveraged and inverse products and the potential for significant losses.

Historical Performance: Highly volatile performance tied directly to NVIDIA's stock performance, making historical data highly variable depending on the period.

Benchmark Comparison: Benchmark is 125% of the inverse daily performance of NVIDIA (NVDA) stock; tracking error is expected due to fees, expenses, and daily rebalancing.

Expense Ratio: 1.15

Average Trading Volume

The average trading volume varies but is generally moderate, influencing the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread varies with market conditions and trading volume, indicating the cost to trade the ETF.

Market Environment Factors

Performance is highly dependent on the market sentiment towards NVIDIA and the broader semiconductor sector. Economic indicators and sector growth prospects heavily influence NVDS.

Growth Trajectory

Growth depends on investor interest in hedging or speculating against NVIDIA's stock; no significant changes to strategy or holdings are anticipated given its objective.

Competitive Edge

NVDS provides a leveraged inverse exposure to NVIDIA, catering to investors seeking to profit from short-term declines in the stock. Its advantage lies in its specific focus and leverage factor, which can magnify returns (and losses). However, this targeted approach also presents a significant risk for those who are not experienced in leveraged products. This type of fund is mostly useful for those who understand the risks involved and are seeking short-term, speculative opportunities.

Volatility

Extremely high volatility due to the leveraged and inverse nature of the fund, making it unsuitable for risk-averse investors.

Market Risk

Significant market risk due to its concentration in a single stock (NVIDIA) and the leveraged nature of the fund, meaning it amplifies both gains and losses based on NVIDIA stock's movement.

Ideal Investor Profile

Sophisticated investors with a high-risk tolerance and a deep understanding of leveraged and inverse products. Investors should be experienced traders seeking short-term opportunities to profit from anticipated declines in NVIDIA's stock.

Market Risk

Best suited for active traders with a short-term investment horizon and a specific bearish outlook on NVIDIA. Not suitable for long-term investors or passive index followers.

The AXS 1.25X NVDA Bear Daily ETF is a highly specialized and risky investment product designed to provide a leveraged inverse return based on the daily performance of NVIDIA. It's suitable for sophisticated, active traders with a short-term bearish outlook on NVIDIA stock. Due to its leveraged nature, it is inherently volatile and not appropriate for long-term investing or risk-averse individuals. Investors must understand the risks and potential for significant losses before investing in NVDS. Investors must continuously monitor the fund, as daily resets can significantly impact the fund's performance over longer periods.

Data Sources:

• AXS Investments Website
• ETF.com
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investing in ETFs involves risk, including the potential loss of principal. Leveraged and inverse ETFs are particularly risky and are suitable only for sophisticated investors who understand the risks involved. Past performance is not indicative of future results.