Single -stock ETF betting a lot of betting Nvidia’s The rally of the foam swept overnight, tracked the loss in the chip dear stock, and questioned the reliability of the leveraged investment tool.
this Graniteshares 2X long NVDA daily ETF (NVDL) It fell 33.78 % overnight. this Direxion Daily NVDA Bull 2X Stock ETF (NVDU) and T-Rex 2X long NVIDIA Daily target ETF (NVDX) 33.8 % and 33.77 % were plummeted. According to FactSet data, these three funds reported the biggest losses within a day.
On the contrary, the fund’s betting on NVIDIA Graniteshares 2X short NVDA daily ETF (NVDL) Rising more than 33 %.
“For investors who think NVIDIA is invincible and” ” Difficult lessons. “
These funds are designed to provide twice the NVIDIA in one day.
According to the intensity of the market movement of a single stock, some of them explosion may be a matter of time.
this Graniteshares 2X long NVDA daily ETF (NVDL)According to data provided by GLOBAL X ETFS, the company has decreased from three largest assets from the peak in November last year, from its peak in November last year to $ 2.4 billion to $ 4.3 billion on Monday. Aums T-Rex 2X long NVIDIA Daily target ETF (NVDX) and Direxion Daily NVDA Bull 2X Stock ETF (NVDU) It is currently hovering at about $ 419 million and $ 497 million.
Islam told CNBC: “Although these ETFs can amplify their income, they can also magnify losses and may not be suitable for investors without high risk tolerance.”
Data from Global X ETF show that since it was approved in 2022, the explosive growth of single -share ETFs exploded, and more than 60 products in the United States were worth $ 18 billion in assets. Compared with basic assets, single -share ETFs strive to provide a magnitude of enlargement.
Morning Star said, “In other words, they are more turbulent.”
NVIDIA stocks in the past year
“Global X ETFS products and investment strategists Marc Jocum said:” According to the strength of the market changes in a single stock, some of them may be a matter of time. “
NVIDIA lost a market value of nearly $ 600 billion on Monday, which is the biggest decline in any company in the United States. This is caused by concern that China’s AI Lab Deepseek has exacerbated AI competition and questioned the United States’ dominance in the industry.
Last week, Deepseek launched R1, which is an open source reasoning mode. It is said that it only took two months, and it could be built less than $ 6 million. According to reports, Deepseek’s reasoning model is better than the latest O1 model in several third -party tests.
Market observers told CNBC that the risk of single -stock ETFs is very high, but when they are used correctly, they may be useful trading tools.
Islam said that these ETFs are most suitable for merchants who want to use volatility to express their strong views on bullish or loser in the day.
Jocum warned: “Although they are powerful tools for tactical day traders, they may not be suitable for long -term investors to buy and hold.”
