NVD Profile
The GraniteShares 1.5x Short NVDA Daily ETF is an actively managed exchange-traded fund designed to deliver a leveraged inverse performance relative to NVIDIA Corporation (NVDA). Specifically, the fund seeks to achieve 1.5 times the inverse (-150%) of the daily percentage change in the stock price of NVIDIA. To achieve this objective, the ETF employs a swap agreement with a major financial institution, which allows the fund to replicate the desired inverse performance on a daily basis.
The primary strategy of the GraniteShares 1.5x Short NVDA Daily ETF is to provide investors with a means to profit from declines in NVIDIA’s stock price, with a magnified effect. By using a swap agreement, the fund is able to track the inverse daily movements of NVDA, effectively offering a magnified hedge or speculative tool for those expecting a decline in the stock’s value. This approach is intended for short-term trading and hedging, given the fund’s daily rebalancing and leverage.
The ETF is designed to cater to investors looking to capitalize on short-term downward movements in NVIDIA’s stock or to hedge against potential declines in their existing NVDA positions. Due to the leveraged nature of the fund, it is subject to higher volatility and risk, and is not intended for long-term holding. The performance of the ETF is reset daily, which means that its returns can deviate significantly from the expected inverse multiple of the stock's performance over longer periods due to compounding effects.
As an actively managed fund, the GraniteShares 1.5x Short NVDA Daily ETF is overseen by a team of investment professionals who actively manage the fund’s exposure through the use of derivatives and other financial instruments. This active management approach aims to ensure that the fund closely tracks its stated performance objectives on a daily basis, while offering investors a targeted tool for short-term strategies related to NVIDIA's stock price movements.
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