Investors are flocking to NVDL, an exchange-traded fund that mirrors the performance of Nvidia Inc. stock, as enthusiasm for artificial intelligence companies remains high. The fund has seen its assets surge to $2 billion, with a significant amount of money flowing in this year.
The GraniteShares 2x Long NVDA Daily ETF (NVDL) has attracted $1.02 billion of investments so far this year, and more than half of that amount, $545.8 million, was recorded on March 11, according to data from etf.com. Coupled with the nearly tripled price gain this year, the overall assets under management for the fund have reached $1.98 billion as of March 13.
GraniteShares, headquartered in New York and managing $3.66 billion across 15 ETFs, recently completed a 6-for-1 stock split for NVDL. The fund’s value saw a 6.1% decline and stood at $40.89 at midday today.
The surge in NVDL’s assets can be attributed to the remarkable rise of Nvidia’s stock, which has quadrupled in value over the past year. As tech companies race to acquire Nvidia’s semiconductors designed for AI applications, ETFs designed to amplify the gains, such as the T-Rex 2X Long NVIDIA Daily Target ETF (NVDX), have experienced significant growth.
According to etf.com senior analyst Sumit Roy, NVDL’s ascent from $1 billion to $2 billion in assets under management in less than two weeks is an incredibly rapid progression. Around 70% of the increase in assets was due to inflows, while the remaining portion was a result of the continued surge in Nvidia shares.
Single-stock, or leveraged, ETFs were introduced less than two years ago for short-term investment purposes. They utilize options and other instruments to double the daily return of a specific stock. GraniteShares offers a range of single-stock funds, including the GraniteShares 2x Short NVDA Daily ETF (NVD), which aims to double returns when Nvidia shares decline. However, that particular fund has faced a 75% decrease in value this year and currently holds $33.6 million in assets. Interestingly, the majority of new investments, totaling $19.3 million, have been made since March 4.
With the increasing popularity of AI and the continued success of Nvidia, investors are finding opportunities to capitalize on these trends through ETFs like NVDL. As technology continues to advance, the potential for growth in AI companies and related investments remains promising.
FAQ
- What is NVDL?
- What has driven the surge in NVDL’s assets?
- Are there other ETFs that aim to magnify the gains of Nvidia?
- What is the purpose of single-stock or leveraged ETFs?
- Does GraniteShares offer other single-stock funds?
NVDL is an exchange-traded fund that mirrors the performance of Nvidia Inc. stock, attracting investors interested in AI companies and related investments.
The surge in NVDL’s assets can be attributed to the impressive performance of Nvidia’s stock, which has quadrupled in value over the past year. Additionally, inflows from investors have contributed to the fund’s growth.
Yes, there are other ETFs designed to amplify the gains of Nvidia. One example is the T-Rex 2X Long NVIDIA Daily Target ETF (NVDX), which has also experienced significant growth.
Single-stock or leveraged ETFs are intended for short-term investments and use options and other tools to double the daily return of a specific stock.
Yes, GraniteShares offers a range of single-stock funds, including the GraniteShares 2x Short NVDA Daily ETF (NVD), which is designed to double returns in falling Nvidia shares.
Source: etf.com
FAQ
- What is NVDL?
- What has driven the surge in NVDL’s assets?
- Are there other ETFs that aim to magnify the gains of Nvidia?
- What is the purpose of single-stock or leveraged ETFs?
- Does GraniteShares offer other single-stock funds?
NVDL is an exchange-traded fund that mirrors the performance of Nvidia Inc. stock, attracting investors interested in AI companies and related investments.
The surge in NVDL’s assets can be attributed to the impressive performance of Nvidia’s stock, which has quadrupled in value over the past year. Additionally, inflows from investors have contributed to the fund’s growth.
Yes, there are other ETFs designed to amplify the gains of Nvidia. One example is the T-Rex 2X Long NVIDIA Daily Target ETF (NVDX), which has also experienced significant growth.
Single-stock or leveraged ETFs are intended for short-term investments and use options and other tools to double the daily return of a specific stock.
Yes, GraniteShares offers a range of single-stock funds, including the GraniteShares 2x Short NVDA Daily ETF (NVD), which is designed to double returns in falling Nvidia shares.
Source: etf.com
Definitions:
– ETF: An exchange-traded fund is a type of investment fund and exchange-traded product, with shares that are tradeable on a stock exchange.
– Assets under management: The total market value of the assets that a financial institution manages on behalf of its clients or investors.
– Stock split: The division of a company’s existing shares into multiple shares to increase the number of shares available and reduce the stock’s price per share.
– Quadrupled: Increased fourfold or multiplied by four.
– Semiconductors: Electronic components that can conduct electricity under certain conditions and are used in various electronic devices.
– Inflows: The amount of money or assets entering a particular financial entity or investment.
– Magnify: Increase or amplify.
– Short-term investment: An investment strategy focused on making profits from short-term price fluctuations rather than long-term appreciation.
– Returns: The gains or profits made on an investment.
– Falling: Declining or decreasing in value or price.
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