Nvidia ETF that delivers double gains sees record flows

ARTIFICIAL intelligence (AI) bulls are more and more gravitating in the direction of an exchange-traded fund (ETF) that amps up bets on Nvidia as buying and selling volumes and inflows hit all-time highs.

After notching a document US$252 million in contemporary capital final week, the GraniteShares 2x Long NVDA Daily ETF noticed its second-biggest buying and selling quantity on Monday (Mar 11) as Wall Street’s AI darling prolonged its Friday retreat.

The fund, which supplies buyers two occasions the each day return of the underlying inventory, has grown to US$1.4 billion since launching on the finish of 2022. NVDA has turn out to be a car for buyers huge and small who’re steadfast of their conviction that the Jensen Huang-led agency is using profound technological shifts within the world economic system that may create new wealth-generating alternatives within the inventory market.

On Friday when Nvidia dropped almost 6 per cent, the fund clocked in document buying and selling volumes, with over US$2 billion price of NVDL exchanging palms. Investors piled a web US$102 million into the fund that day, doubtless betting on a short-term reversal within the semiconductor inventory.

To Dave Lutz, head of ETFs at JonesTrading, “activity in NVDL is a key indicator of retail sentiment and activity”, given the dimensions of the ETF’s buying and selling quantity. Meanwhile, brief curiosity as a share of shares excellent within the fund is low at simply 1.5 per cent, based on Markit Securities.

The endurance of Nvidia’s rally shall be examined on Tuesday, when a key inflation studying drops.

Year-to-date NVDL’s returns stand at 156 per cent. It is the second-best performing ETF within the US in 2024. The greatest performing fund – the US$269 million T-Rex 2X Long NVIDIA Daily Target ETF – is up roughly 179 per cent. NVDL traded as a 1.5x fund till mid-January, which accounts for its trailing efficiency.

Even after Nvidia’s two-day drop, the inventory continues to be up greater than 70 per cent to this point this yr. BLOOMBERG

Source: www.businesstimes.com.sg”