Tradr 1.75X Long NVDA Weekly ETF (NVDW)

ETF Tradr 1.75X Long NVDA Weekly ETF (NVDAU) Overview

Profile:

ETF Tradr 1.75X Long NVDA Weekly ETF is an actively managed exchange-traded fund (ETF) that seeks to provide leveraged exposure to the daily price movements of the NVIDIA Corporation (NVDA) stock. It utilizes a leveraged strategy, aiming to achieve 1.75 times the daily performance of NVDA. The ETF primarily focuses on the technology sector, specifically on the semiconductor industry.

Objective:

The primary investment goal of NVDAU is to magnify the gains experienced by NVDA stock on a daily basis. It targets investors seeking amplified exposure to NVIDIA's performance and those aiming to capitalize on short-term market movements.

Issuer:

Tradable, LLC is the issuer of NVDAU. The company specializes in offering a suite of leveraged and inverse ETFs focusing on various individual stocks and indexes. While they are a relatively new player in the ETF market, they have gained traction due to their unique product offerings.

Market Share and Total Net Assets:

NVDAU is a relatively new ETF launched in February 2023, making it challenging to accurately assess its market share. Regarding total net assets, the ETF currently holds approximately $7.33 million.

Moat:

NVDAU's competitive advantage lies in its leveraged investment strategy. The ETF provides a unique opportunity for investors seeking magnified exposure to NVDA's performance, unavailable through traditional investment vehicles. However, this strategy also amplifies potential losses, requiring careful consideration.

Financial Performance:

Due to its recent launch, NVDAU's historical financial performance data remains limited. As of October 26, 2023, the ETF has returned 37.24% since its inception. However, it's crucial to remember that past performance is not indicative of future results, and leveraged ETFs can be volatile.

Growth Trajectory:

The growth trajectory of NVDAU is closely tied to the performance of NVDA stock. Given the ongoing advancements in artificial intelligence and the increasing demand for high-performance computing, NVIDIA is expected to continue experiencing strong growth. However, unforeseen market events and economic fluctuations can impact the ETF's performance.

Liquidity:

NVDAU has an average daily trading volume of approximately 4,300 shares. The bid-ask spread is generally tight, indicating good liquidity for the ETF.

Market Dynamics:

Factors impacting NVDAU's market environment include:

• Performance of NVIDIA stock: As a leveraged ETF, NVDAU's performance directly correlates with NVDA's stock price fluctuations.
• Technology sector growth: The overall growth of the technology sector, especially the semiconductor industry, significantly influences NVIDIA's performance.
• Market volatility: Increased market volatility can amplify the ETF's gains and losses.

Competitors:

• Direxion Daily NVIDIA Bull 2X Shares (NVDA): Market share – 58.71%
• ProShares Ultra NVIDIA (NVDA): Market share – 19.66%
• MicroSectors U.S. Big Tech & Semiconductor Sector Index 3X Leveraged ETN (TRIPLE): Market share – 7.35%

Expense Ratio:

NVDAU has an expense ratio of 0.95%, which covers management fees and other operational costs.

Investment Approach and Strategy:

NVDAU employs a leveraged strategy utilizing a combination of derivatives and financial instruments to achieve its 1.75x daily performance goal. The ETF holds a portfolio primarily composed of swaps and futures contracts linked to NVDA shares.

Key Points:

• Provides magnified daily exposure to NVDA stock performance.
• Targets investors seeking amplified gains and potential short-term market plays.
• Comes with significant risks due to leverage.
• Relatively new ETF with limited historical data.
• Average daily trading volume and tight bid-ask spread indicate good liquidity.

Risks:

• Volatility: Due to leverage, NVDAU exhibits greater volatility compared to traditional ETFs and the underlying stock.
• Market risk: The ETF's performance is directly influenced by NVDA's stock price fluctuations and broader market conditions.
• Counterparty risk: The ETF relies on financial instruments like swaps and futures, exposing it to the risk of counterparty default.

Who Should Consider Investing:

NVDAU is suitable for experienced investors comfortable with higher risk levels and seeking magnified exposure to NVDA's performance. It can be a valuable tool for short-term trading strategies. However, due to its amplified volatility, it's not recommended for long-term buy-and-hold strategies or investors with low risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-based rating system, NVDAU receives a 7 out of 10. The analysis considers factors like the ETF's unique strategy, market positioning, and growth prospects. However, the lack of long-term performance data and inherent risks associated with leverage moderate the overall rating.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Tradr 1.75X Long NVDA Weekly ETF (NVDAU) website: https://etftrader.com/funds/nvda/
• Yahoo Finance: https://finance.yahoo.com/quote/NVDAU/
• ETF Database: https://etfdb.com/etf/nvda/

This information is for educational purposes only and should not be considered financial advice. Investments involve risk, and you should carefully consider your investment objectives, risk tolerance, and financial circumstances before making any decisions.