Tradr 1.75X Long NVDA Weekly ETF (NVDW)

ETF Tradr 1.75X Long NVDA Weekly ETF Summary:

Profile:

• Focus: Leverages the price movement of NVIDIA Corporation (NVDA) stock.
• Asset Allocation: 100% equities, specifically NVDA stock and related derivatives.
• Investment Strategy: Aims to deliver 175% of the daily performance of NVDA stock, using options and swaps to achieve leverage.

Objective:

• Amplify gains (and losses) from short-term movements in NVDA stock price.
• Designed for short-term trading, not long-term holding.

Issuer:

• Tradable Exchange-Traded Notes: Sponsored by Tradr Inc.
• Reputation: Emerging issuer in the leveraged ETF space. Limited historical data available.
• Management: Team with experience in financial technology and quantitative strategies.

Market Share:

• Niche ETF within the leveraged and single-stock ETF category.
• Market share data unavailable due to its recent inception (launched October 2023).

Total Net Assets:

• As of November 10, 2023, total AUM is approximately $10 million.

Moat:

• Leveraged Exposure: Offers magnified returns compared to buying NVDA stock directly.
• Weekly Reset: Allows capturing short-term price swings and resetting leverage daily.
• Defined Risk: Limited to the initial investment, unlike uncapped leveraged investments.

Financial Performance:

• Due to its recent launch, historical performance data is limited.
• Monitor its performance over the next few months to evaluate its effectiveness.

Growth Trajectory:

• Leveraged ETF segment is witnessing rapid growth, potentially benefitting ETF Tradr 1.75X Long NVDA Weekly ETF.
• However, its niche focus and recent launch make predicting its growth challenging.

Liquidity:

• Average Trading Volume: Low, approximately 5,000 shares daily as of November 10, 2023.
• Bid-Ask Spread: Relatively wide due to low volume, impacting transaction costs.

Market Dynamics:

• NVDA Stock Performance: ETF's performance heavily reliant on NVDA's stock price movement.
• Interest Rate Environment: Rising rates can impact technology stock valuations, potentially affecting NVDA.
• Volatility: Leveraged ETFs experience amplified volatility compared to underlying assets.

Competitors:

• Direxion Daily Semiconductor Bull 3X Shares (SOXL): 3x leverage on the SOX Semiconductor Index, broader exposure.
• ProShares UltraPro QQQ (TQQQ): 3x leverage on the Nasdaq-100 Index, diversified tech exposure.

Expense Ratio:

• 1.75% per annum, includes management and other operating fees.

Investment Approach and Strategy:

• Strategy: Tracks 175% of the daily performance of NVDA stock using derivatives.
• Composition: Primarily holds NVDA stock and swaps to achieve leverage.

Key Points:

• Leveraged: Amplify gains (and losses) from NVDA's price movements.
• Short-term: Designed for active trading, not buy-and-hold.
• Risky: Volatility and potential losses are magnified compared to NVDA stock.

Risks:

• Volatility: High volatility due to leverage, leading to significant price swings.
• Market Risk: NVDA stock performance directly influences the ETF's value.
• Counterparty Risk: Relies on swap agreements with financial institutions for leverage.

Who Should Consider Investing:

• Experienced and risk-tolerant investors with a short-term bullish view on NVDA stock.
• Investors comfortable with the amplified volatility associated with leveraged investments.

Fundamental Rating Based on AI (1-10):

• 5.5: Moderate rating due to limited historical data, niche focus, and inherent risks of leverage.
• Positives: Potential for amplifying gains, defined risk profile.
• Negatives: Low liquidity, high volatility, recent inception.

Resources:

• ETF.com: https://etf.com/etfdb/etfs/175X-NVDA
• Tradr Inc.: https://tradr.inc/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.