The GraniteShares 1.5x Short NVDA Daily ETF (NVD) is an exchange-traded fund designed to deliver the daily performance of NVIDIA Corporation stock. The ETF is managed by GraniteShares and trades under the ticker NVD on the Nasdaq.

Classified as a leveraged inverse single-stock ETF, the fund uses financial derivatives to provide leveraged short exposure to NVIDIA shares. Its strategy enables investors to potentially benefit from declines in NVIDIA's stock price without directly engaging in short selling.

The ETF follows an active management approach and seeks to deliver -150% of the daily return of NVIDIA stock, before fees and expenses. Because the objective is measured on a daily basis, returns over periods longer than one day may differ significantly from -1.5 times the cumulative return of the underlying stock due to the effects of compounding.

Diversification and sector exposure

NVD provides exposure primarily associated with:

• NVIDIA.

• Semiconductors.

• Artificial intelligence.

• Accelerated computing.

• Inverse strategies.

• Leverage.

• Derivatives.

• Technology.

Because the fund is tied to a single company, its portfolio is highly concentrated and its performance depends directly on the movement of NVIDIA shares. The ETF generally produces positive returns when NVIDIA's stock declines on a daily basis and negative returns when the stock rises.

Structure and costs

NVD shares trade on the secondary market on the NASDAQ during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund uses swaps, futures contracts, and other derivatives to obtain its leveraged inverse exposure to NVIDIA shares, rebalancing its portfolio daily to maintain its investment objective.

The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee.

History and evolution of the ETF

The GraniteShares 1.5x Short NVDA Daily ETF was launched in 2023 to provide investors with an exchange-traded vehicle for obtaining leveraged short exposure to NVIDIA stock. Since inception, the fund has primarily been used for short-term tactical strategies by investors seeking portfolio hedging or expressing a bearish view on NVIDIA shares.

In recent years, the rapid growth of artificial intelligence, expanding demand for GPUs, increasing investment in data center infrastructure, and the heightened volatility of NVIDIA stock have contributed to growing interest in leveraged and inverse ETFs linked to the company.

Additional Information

GraniteShares 1.5x Short NVDA Daily ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $50.61 million.

Over the past 12 months, GraniteShares 1.5x Short NVDA Daily ETF recorded a return of -45.94%, with its price trading between $3.95 and $11.04 during the same period.

The ETF is traded under the ticker NVD.