Rising Nvidia, AI Bets Bring NVDL Near $2B in Assets

NVDL, the exchange-traded fund that doubles Nvidia Inc. stock returns, has $2 billion in assets as investor interest in artificial intelligence businesses continues.

According to etf.com, the GraniteShares 2x Long NVDA Daily ETF (NVDL) earned $1.02 billion this year, with $545.8 million coming on March 11. 

Bloomberg data shows the fund's assets under management at $1.98 billion as of early March 13, after a roughly three-fold price gain this year.

GraniteShares, which oversees $3.66 billion in 15 ETFs, divided NVDL stock 6-for-1 Wednesday. At noon today, the fund declined 6.1% to $40.89.

Tech businesses are scrambling to buy Nvidia's AI semiconductors, sending its stock up nearly fourfold in a year. T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) and other ETFs that magnify returns have surged.

NVDL went from $1 billion to $2 billion in AUM in less than two weeks, which is an insanely rapid ascent,” etf.com senior analyst Sumit Roy said. “About 70% of the increase was due to inflows, while the rest came from Nvidia and NVDL shares rising.”

Single-stock, leveraged ETFs debuted less than two years ago. They employ options and other methods to double a stock's daily return for short-term investing.

GraniteShares features several single-stock funds that capitalize on stock gains and dips, including the 2x Short NVDA Daily ETF. That fund, which tries to quadruple gains in declining Nvidia shares, has $33.6 million and fell 75% this year. Most of the assets have arrived in recent days, with $19.3 million since March 4.

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