The GraniteShares 2x Long LCID Daily ETF (LCDL) seeks to provide daily investment results that correspond to twice (200%) the daily performance of Lucid Group Inc. (LCID) stock. This single-stock leveraged ETF amplifies both gains and losses of the electric vehicle manufacturer through derivative instruments and daily rebalancing.
How It Works
LCDL uses swap agreements, futures contracts, and other derivatives to achieve 2x daily exposure to LCID stock movements without directly holding the underlying shares. The fund rebalances daily at market close to maintain its 200% target leverage ratio. As an actively managed leveraged product, it employs sophisticated risk management and collateral posting requirements. The daily reset mechanism means returns compound differently over multi-day periods compared to simply doubling LCID's performance.
Key Features
- Provides 2x leveraged exposure to Lucid Group, allowing amplified participation in the electric vehicle company's daily price movements
- Daily rebalancing maintains precise 200% leverage target, automatically adjusting derivative positions to track performance accurately
- Single-stock focus eliminates diversification, concentrating all risk and reward on Lucid's business execution and market sentiment
Risks
- This ETF can lose value rapidly if LCID stock declines, with a 10% LCID drop resulting in approximately 20% ETF loss due to 2x leverage amplification
- Daily rebalancing causes compounding decay over multiple days—if LCID drops 25% then rises 33%, the ETF does not return to break-even despite LCID recovering
- Single-stock concentration means total dependence on Lucid's volatile business prospects, regulatory changes affecting EVs, and company-specific execution risks
Who Should Own This
Designed exclusively for sophisticated day traders and short-term speculators with high risk tolerance seeking amplified exposure to LCID's daily movements. Maximum holding period should be hours to days, never weeks or months. Suitable only as a tactical trading position representing under 5% of total portfolio for experienced investors who actively monitor positions.