ETFS with one warehouse is betting strongly Nvidia The Rally blister fell overnight, tracking the losses in Chip Darling actions, undermining the reliability of the investment vehicle.
. Granteshares 2x NVDA length per day ETF (NVDL) fell by 33.78% overnight. . Direxion Daily NVDA Bull 2x Actions ETF (NVDU) AND T-rex 2x length Nvidia Daily Target ETF (NVDX) 33.8% and 33.77% fell respectively. According to FactSet data, all three funds reported their greatest loss in one day.
And vice versa, nvidia funds like Granteshares 2x short NVDA Daily ETF (NVDL) It increased by over 33%.
“This sale was a difficult lesson for investors who perceived Nvidia as invincible and undertook aggressive plants for its development, not understanding the risk of ETF for individual actions,” said Roxanna Islam, head of sectoral and industry research at TMX Vettafi.
The funds have been designed to achieve NVIDIA performance for one day twice.
It can be a matter of time before some of them implode depending on the intensity of the market movements of individual stocks.
. Granteshares 2x NVDA length per day ETF (NVDL)which can boast of the largest assets managed from these three, Aum dropped by $ 2.4 billion from the summit in November last year to $ 4.3 billion from Monday, according to the data provided by Global X ETFS. Aums of of T-rex 2x length Nvidia Daily Target ETF (NVDX) AND Direxion Daily NVDA Bull 2x Actions ETF (NVDU) Currently, approximately USD 419 million and USD 497 million float, respectively.
“Although these ETFs can increase profits, they can also increase losses and may not be suitable for investors without high risk tolerance,” said Islam CNBC.
Since their approval in 2022, ETF with a one -time Stock has recorded an explosion of popularity, with over 60 products available in the US worth $ 18 billion, according to data from Global X ETFS. ETF with a one -time warehouse strive to provide reinforced phrases compared to the basic resource.
“In other words, they are more unstable,” said Morningstar.
NVIDIA shares over the past year
“It can be a matter of time before some of them moved in depending on the intensity of the market movements of individual actions,” said Marc Jocum, product strategist and investment in Global X ETFS.
NVIDIA lost almost $ 600 billion on the market on Monday, the largest decline for each company in one day in the USA was caused by the fears of the Chinese laboratory AI Deepseek, which intensifies AI competition and undermines the dominance of America in this sector.
Last week, Deepseek launched R1, a model of Open Source reasoning, which, as it was claimed, lasted only two months and less than $ 6 million. It was reported that the Deepseeka reasoning model exceeded the latest O1 AI model in several third parties tests.
ETF with one -time Stock have a huge risk, but they can be useful trade tools when they are properly employed, in particular for speculators, market observers said CNBC.
These ETFs are best suited for traders who want to use volatility to express a strong stubborn or bear in one day, said Islam.
“Although they are powerful tools for tactical traders, they may not match the investors of long-term buyers and maintaining,” said Jocum.