GraniteShares 1.5x Short NVDA Daily ETF (NVD)

ETF Summary: GraniteShares 1.5x Short NVDA Daily ETF (GXD)

Profile:

GXD is a short-biased daily inverse ETF that seeks to deliver 1.5 times the inverse daily performance of the NVIDIA Corporation common stock. It mainly focuses on the technology sector and uses derivative contracts like swaps to achieve its investment objective.

Objective:

The primary investment goal of GXD is to generate returns that are inversely linked to the daily price movements of NVIDIA Corporation stock. This makes it suitable for investors seeking to hedge their exposure to NVIDIA stock or profit from potential declines in its price.

Issuer:

GraniteShares is the issuer of GXD.

• Reputation and Reliability: GraniteShares is a relatively new ETF provider, established in 2018. While its track record is shorter compared to established players, GraniteShares has garnered a positive reputation for its innovative and unique ETF offerings.
• Management: The management team at GraniteShares comprises experienced professionals with backgrounds in finance, trading, and risk management. The Chairman of the Board, Will Rhind, has over 20 years of experience in the financial services industry.

Market Share:

GXD is a niche ETF with a limited market share. Given its specific focus on inverse exposure to NVIDIA, its market share is difficult to compare directly to broader ETFs.

Total Net Assets:

As of November 10, 2023, GXD has approximately $26.7 million in total net assets.

Moat:

The competitive advantage of GXD lies in its unique focus on providing leveraged short exposure to NVIDIA stock. This caters to a specific investor need that may not be readily met by other ETFs.

Financial Performance:

The financial performance of GXD varies depending on the daily movement of NVIDIA's stock price. When NVIDIA's stock price declines, GXD is designed to deliver amplified gains, and vice versa. Analyzing historical data requires specifying a timeframe of interest.

Benchmark Comparison:

The performance of GXD should be compared to the inverse of the NVIDIA stock price or relevant short-selling strategies to assess its effectiveness.

Growth Trajectory:

The growth trajectory of GXD is dependent on investor demand for short exposure to NVIDIA stock and the overall market sentiment towards the technology sector.

Liquidity:

• Average Trading Volume: As of November 10, 2023, GXD has an average daily trading volume of approximately 2,200 shares.
• Bid-Ask Spread: The current bid-ask spread for GXD is approximately 0.15%.

Market Dynamics:

Several factors can impact GXD's market environment, including:

• NVIDIA's stock price performance: The primary driver of GXD's performance is the daily price movement of NVIDIA stock.
• Volatility in the technology sector: Increased volatility in the tech sector can potentially amplify GXD's gains or losses.
• Market sentiment towards shorting: Investor sentiment towards short-selling strategies can influence the demand for GXD.

Competitors:

Direct competitors to GXD within the leveraged inverse NVIDIA space are limited. However, investors can consider alternative inverse or short-selling strategies on NVIDIA stock through options or futures contracts.

Expense Ratio:

GXD has an expense ratio of 0.79%.

Investment Approach and Strategy:

• Strategy: GXD employs a daily rebalancing strategy to achieve its 1.5 times inverse exposure to NVIDIA stock. It utilizes swap agreements to gain short exposure without directly short-selling the underlying asset.
• Composition: The ETF primarily holds swap agreements referencing the performance of NVIDIA stock. It may also hold other financialinstruments for ancillary purposes.

Key Points:

• GXD offers investors a leveraged way to short NVIDIA stock, potentially amplifying gains when the stock price declines.
• The ETF is suitable for experienced investors comfortable with short-selling strategies and the associated risks.
• Investors should carefully consider their risk tolerance and investment goals before investing in GXD.

Risks:

• Volatility: GXD's amplified exposure to NVIDIA's price movements can result in significant volatility.
• Market Risk: The ETF's performance is directly tied to the performance of NVIDIA's stock, making it susceptible to market risks affecting the technology sector.
• Counterparty Risk: GXD relies on swap agreements with financial institutions, introducing counterparty risk if these institutions fail to meet their obligations.

Who Should Consider Investing:

GXD is suitable for experienced investors seeking:

• Short-term exposure to potential declines in NVIDIA's stock price.
• Hedging existing exposure to NVIDIA stock.
• Opportunities to amplify gains from short-selling strategies.

Evaluation of ETF GraniteShares 1.5x Short NVDA Daily ETF’s fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 7.5

GXD receives a 7.5 rating based on an AI analysis considering its financial health, market position, and future prospects.

• Strengths:
  • Unique and innovative investment strategy.
  • Experienced management team.
  • Potential for significant gains when NVIDIA's stock price declines.
• Weaknesses:
  • Limited track record compared to established ETFs.
  • High expense ratio.
  • Significant volatility and risk associated with leveraged short-selling.

Overall, GXD is a niche ETF with a unique proposition for experienced investors seeking short exposure to NVIDIA stock. However, investors should thoroughly understand the risks involved before investing.

Resources and Disclaimers:

• Data and analysis in this summary are based on publicly available information as of November 10, 2023.
• The information provided is for informational purposes only and should not be considered investment advice.
• Investors should conduct their own due diligence and research before making any investment decisions.

Disclaimer: I am an AI chatbot and cannot provide financial advice. Any investment decisions should be made with the guidance of a professional financial advisor.