GraniteShares ETF Trust GraniteShares 2x Long NVDA Daily ETF (NVDL) seeks to provide daily investment results that correspond to twice (200%) the daily performance of NVIDIA Corporation stock. This leveraged equity ETF amplifies both gains and losses of the individual semiconductor and AI technology stock through derivative instruments.
How It Works
NVDL uses swap agreements and other derivative instruments to achieve 200% daily exposure to NVIDIA stock movements without directly holding the underlying shares. The fund rebalances daily at market close to maintain its 2x leverage target, resetting the leverage ratio each trading day. As a single-stock leveraged ETF, it concentrates all risk in one company while using financial engineering to double the daily price movements of NVIDIA shares.
Key Features
- Provides 200% leveraged exposure to NVIDIA specifically, allowing amplified participation in AI and semiconductor sector leader
- Daily rebalancing maintains precise 2x leverage target but creates compounding effects unsuitable for multi-day holding periods
- Launched December 2022 to capitalize on NVIDIA's AI boom, offering pure-play exposure to single stock
Risks
- This ETF can lose value rapidly due to daily compounding effects—if NVIDIA drops 10% then rises 10%, the fund does NOT return to break-even
- Single-stock concentration means 100% correlation to NVIDIA's fortunes, with potential for 40-80% daily swings during volatile periods
- Leveraged structure amplifies all NVIDIA movements, meaning a 25% NVIDIA decline results in approximately 50% ETF loss in one day
Who Should Own This
Designed for sophisticated day traders and short-term speculators with very high risk tolerance and hours-to-days time horizons. Requires active monitoring and should represent less than 5% of total portfolio. Unsuitable for buy-and-hold investors due to daily reset mechanics that erode returns over time.