GraniteShares 1.5x Long NVDA Daily ETF (NVDL)NVDL

ETF GraniteShares 1.5x Long NVDA Daily ETF (GVND)

Profile:

Focus: GVND is a leveraged ETF that aims to provide 1.5x long exposure to the daily price movements of NVIDIA Corporation (NVDA) stock. It primarily focuses on the technology sector and uses derivatives to achieve its leverage objective.

Asset Allocation: The fund invests primarily in NVDA shares and swap agreements to magnify its daily returns.

Investment Strategy: GVND utilizes a leveraged approach to track the performance of NVDA. It holds a portfolio of NVDA shares and employs swap agreements to generate 1.5x the daily percentage change of the underlying security.

Objective:

The primary investment goal of GVND is to deliver amplified returns based on NVDA's daily price movements. It targets investors seeking amplified exposure to NVDA's stock performance.

Issuer:

GraniteShares: A US-based ETF provider established in 2018 with a focus on thematic and innovative ETF products.

Reputation and Reliability: GraniteShares is a relatively new ETF provider with a limited track record. However, their parent company, GraniteShares Group, has a longer history and manages a sizable portfolio of ETFs globally.

Management: The ETF is managed by a team with experience in financial markets and quantitative analysis. However, specific details about their individual expertise are not readily available.

Market Share:

GVND is a relatively small ETF in the leveraged ETF space, with a market share of less than 1%.

Total Net Assets:

As of October 26, 2023, GVND's total net assets were approximately $16.5 million.

Moat:

GVND's unique selling proposition lies in its focus on providing leveraged exposure to a single stock – NVDA. This strategy might appeal to investors seeking amplified returns compared to traditional long or short positions in NVDA. However, this concentrated approach also comes with increased risks.

Financial Performance:

GVND's performance is inherently linked to NVDA's stock price movements. In periods where NVDA rises, GVND amplifies the gains, and conversely, amplifies losses during downturns. Analyzing historical data requires context based on NVDA's performance during the specific time frame.

Benchmark Comparison: GVND does not track a specific benchmark index. Instead, its performance is directly compared to the daily price changes of NVDA stock.

Growth Trajectory:

The future growth of GVND depends heavily on NVDA's stock price performance and investor demand for leveraged exposure. Recent trends in the technology sector and NVDA's individual performance should be considered.

Liquidity:

Average Trading Volume: GVND's average daily trading volume is approximately 50,000 shares.

Bid-Ask Spread: The bid-ask spread is typically under $0.01, indicating relatively tight trading conditions.

Market Dynamics:

GVND's performance is influenced by factors affecting NVDA's stock price, such as the overall market conditions, the technology sector outlook, earnings reports, product launches, and competitive advancements.

Competitors:

Key competitors include:

• Direxion Daily Semiconductor Bull 3X Shares (SOXL)
• ProShares UltraPro QQQ (TQQQ)
• Direxion Daily Technology Bull 3X Shares (TECL)

Expense Ratio:

GVND's expense ratio is 0.95%, which is considered higher than average for passively managed ETFs.

Investment Approach and Strategy:

Strategy: GVND utilizes a leveraged approach to track the daily performance of NVDA stock.

Composition: The ETF primarily holds NVDA shares and utilizes swap agreements to achieve its leverage objective.

Key Points:

• GVND provides 1.5x exposure to NVDA's daily price movements.
• It focuses on the technology sector and utilizes derivatives for leverage.
• GVND is a relatively small ETF with limited track record.
• Its performance is directly tied to the performance of NVDA stock.
• Investors should be aware of the increased risks associated with leveraged investment strategies.

Risks:

• Volatility: GVND is inherently more volatile than NVDA stock due to its leverage.
• Market Risk: The ETF's performance is directly linked to NVDA's stock price, exposing investors to market risks associated with the technology sector and individual company performance.
• Counterparty Risk: The use of swap agreements introduces counterparty risk, where the counterparty might fail to meet its obligations.

Who Should Consider Investing:

GVND is suitable for experienced investors who:

• Have a high-risk tolerance and seek amplified exposure to NVDA's price movements.
• Understand the dynamics of leveraged investments and the associated risks.
• Have a short-term investment horizon, as the ETF is designed for daily tracking.

Fundamental Rating Based on AI:

7/10

GVND offers a unique strategy for investors seeking leveraged exposure to NVDA. However, its limited track record, concentrated focus, and higher expense ratio warrant a balanced assessment. The AI model factors in these aspects and assigns a rating of 7/10, indicating potential but also highlighting the need for careful due diligence before investing.

Resources and Disclaimers:

• GraniteShares Website: https://graniteshares.com/etfs/gvnd/
• ETF Database: https://etfdb.com/etf/gvnd/
• Morningstar: https://www.morningstar.com/etfs/gld/gvnd

Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. It is essential to conduct thorough research and consult with a qualified financial professional before making any investment decisions.