NVDL 📈 GraniteShares 1.5x Long - Overview

The GraniteShares 1.5x Long NVDA Daily ETF, listed on NASDAQ under the ticker NVDL, is designed to provide investors with a leveraged play on the daily performance of NVIDIA Corporation's stock. To achieve this, the fund engages in swap agreements with prominent financial institutions, which can have durations spanning from a single day to over a year. These swap agreements essentially involve the exchange of returns - or the differences in returns - between the fund and the financial institution, based on the performance of the underlying stock, which in this case is NVIDIA. This mechanism allows the fund to amplify the daily returns of NVIDIA's stock by 1.5 times, offering investors a way to potentially capitalize on short-term movements in the stock's price.

It's worth noting that the GraniteShares 1.5x Long NVDA Daily ETF is classified as a non-diversified fund. This means it can invest a significant portion of its assets in a single issuer or a smaller number of issuers, which can lead to higher volatility and increased risk compared to diversified funds. The fund's ISIN is US38747R8271, and it falls under the category of trading--leveraged equity ETFs. This categorization reflects its primary function: to provide leveraged exposure to the daily performance of a specific equity, in this case, NVIDIA, rather than a broad market index or a diversified portfolio of stocks.

As a trading--leveraged equity ETF, the GraniteShares 1.5x Long NVDA Daily ETF is geared towards investors seeking to capitalize on short-term price movements of NVIDIA's stock. The fund's leverage factor of 1.5 times the daily return of the underlying stock means that for every 1% move in NVIDIA's stock price, the fund aims to return 1.5%. However, this also means that the fund's losses can be amplified by the same factor if the stock moves in the opposite direction. Therefore, it's crucial for investors to understand the risks associated with leveraged ETFs and to have a clear investment strategy before investing in such products.