Direxion Launches 2 Nvidia Single-Stock ETFs

Direxion Launches 2 Nvidia Single-Stock ETFs

The funds will allow investors to easily get exposure to the chipmaker, whose stock has been soaring.

Finance Reporter
Reviewed by: Ron Day
Edited by: Mark Nacinovich

Direxion, an asset manager with over $30 billion in 78 ETFs, has launched two single-stock exchange-traded funds that give investors magnified or inverse exposure to Nvidia Corp., the chipmaker whose stock has skyrocketed this year.  

Both the Direxion Daily NVDA Bull 1.5X Shares (NVDU) and the Direxion Daily NVDA Bear 1X Shares (NVDD) launched on Sept. 13. The funds give investors exposure to Nvidia’s common stock without the need for the investors to actually buy the stock.  

 “The ability to trade NVDU or NVDD is one way for traders to respond tactically to potential company events and market sentiment, regardless of the stock’s direction,” Edward Egilinsky, managing director and head of distribution and alternatives at Direxion, said in a statement.  

The investment firm rolled out the funds after the smashing success of its similarly structured Tesla single-stock ETF, the Direxion Daily TSLA Bull 1.5X Shares (TSLL) which has garnered over $1 billion in assets under management since its launch in August 2022.  

The two new Nvidia funds are intended to be used for short-term bets on the company instead of as a long-term investment strategy, according to the company.

“If you’re an active trader, whether that be institutional or retail, and you have a strong feel on the next short-term direction on the stock, you’ll want to get as much juice out of that as possible,” said Todd Sohn, ETF analyst at Strategas Securities.  

Nvidia Stock Price 

Investors are seeking to get exposure to the reigning chipmaker king that has been supercharged by this year’s artificial intelligence craze. The company’s stock has soared 217% year to date, and the firm beat second-quarter estimates with sales up over 100%.  

Direxion offers ETFs that give investors exposure to the growing semiconductor industry that is propelling artificial intelligence. Its largest ETF is the Direxion Daily Semiconductor Bull 3X Shares (SOXL). 

GraniteShares offers investors similar exposure to Nvidia in its GraniteShares 1.5 Long NVDA Daily ETF (NVDL) and its 1.5x Short of NVIDIA Corp (NVD).  

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.