NVDL Profile
The GraniteShares 1.5x Long NVDA Daily ETF is an actively managed exchange-traded fund designed to provide investors with 1.5 times the daily performance of NVIDIA Corporation (NVDA). The fund achieves this objective through the use of swap agreements with major financial institutions, which enable it to magnify the daily percentage change in NVIDIA’s stock price by a factor of 1.5. This leverage is intended to offer investors enhanced exposure to NVIDIA’s short-term price movements.
To accomplish its investment strategy, the fund enters into swap agreements, which are contracts between the fund and financial institutions. These agreements involve exchanging the return or the differentials in rates of return on NVIDIA’s stock. The swap agreements can have varying durations, from as short as a single day to over a year, depending on the fund’s strategy and market conditions. By leveraging these agreements, the ETF aims to deliver amplified returns corresponding to NVIDIA’s daily price fluctuations.
The GraniteShares 1.5x Long NVDA Daily ETF is specifically designed for investors looking to capitalize on short-term upward movements in NVIDIA’s stock price. Due to its leveraged nature, the fund is highly sensitive to daily price changes and is subject to increased volatility. It is suited for short-term trading and speculative strategies rather than long-term investments, given the potential for significant deviations from its targeted performance over extended periods due to daily compounding effects.
As an actively managed fund, the GraniteShares 1.5x Long NVDA Daily ETF is overseen by a team of investment professionals who actively manage the fund’s positions and leverage. The fund’s management ensures that the ETF closely tracks its stated objective of delivering 1.5 times the daily return of NVIDIA’s stock, providing investors with a precise tool for short-term trading and investment in the tech sector.
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