The GraniteShares 2x Nvidia ETF delivers twice Nvidia’s daily return via total return swaps, carries a 1.05% expense ratio and offers higher liquidity than its Direxion rival. Daily leverage resets lead to volatility decay during Nvidia’s frequent 3–8% session swings, although strong uptrends can still drive outsized gains.
The GraniteShares 2x Nvidia ETF seeks to deliver twice the daily performance of Nvidia using total return swaps rather than holding double the shares. It carries a 1.05% expense ratio and is structured to reset its exposure each trading day.
Its main rival, Direxion’s 2x Nvidia ETF, offers a slightly lower expense ratio of 0.92% but lags in trading volume and liquidity. Higher volume in the GraniteShares fund makes it the default choice for many leveraged traders.
The ETF resets its leverage at the close of each trading day, meaning gains and losses compound on a daily basis rather than over longer periods. This daily rebalancing can magnify returns in trending markets but also amplifies losses when sessions fluctuate.
Volatility decay occurs as the ETF bleeds value during sideways or choppy trading, a significant risk for Nvidia’s 3–8% intraday swings. In sharp drawdowns, losses can compound faster than investors anticipate, reducing returns even if the underlying stock finishes unchanged.
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