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One of the best bets for investors in 2023 is looking to increase its potential reward — and risk — in the new year. ETF issuer GraniteShares filed Wednesday to increase the leverage on dozens of single stock ETFs, most notably the GraniteShares 1.5x Long NVDA Daily ETF (NVDL) . The filing calls for the leverage on the fund to be increased to 2-times. The Nvidia fund has gained more than 400% this year, piggy backing on the 230% rally in the underlying common stock, making it the top performing U.S. ETF of the year, according to FactSet. NVDL YTD mountain This leveraged Nvidia single-stock ETF is the top performing U.S. ETF of the year. The fund’s success is thanks in part to the excitement around Nvidia ‘s importance in the artificial intelligence industry. Single-stock ETFs are structured to produce a leveraged return on a one-day basis, poisitively or inversely, depending how it’s structured, and resetting every day. That makes them particularly active on big news days for the company being tracked, such as after Nvidia’s earnings report on Tuesday evening. “We’re already over a million shares traded, so that’s going to be 100 million dollars worth of notional volume today. It’s an incredible story … There’s still huge interest in everything AI and everything Nvidia,” GraniteShares CEO Will Rhind told CNBC on Wednesday. Single-stock ETFs were first approved in the U.S. in 2022, and the launches have been hit and miss so far. The NVDL has about $250 million in assets under management, making it one of the more successful single-stock ETFs in the United States. It has an expense ratio of 1.15%. Rhind said that the decision to increase the leverage comes after the company got more comfortable running the funds since they first debuted. “In terms of being in the market now for over a year and understanding this a bit better, we think we can deliver on what customer feedback actually is with these,” Rhind said. The filing says that the changes in leverage are expected to implemented in January, though GraniteShares could receive feedback from regulators in the meantime. The tweak would bring the NVDL’s leverage in line with the T-REX 2X Inverse Nvidia Daily Target ETF (NVDX) , which was introduced in October.
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