NVDL Nears $2B in Assets on Rallying Nvidia, AI Bets

Investors pumping money into NVDL, the exchange-traded fund that doubles the return on Nvidia Inc. stock, have pushed the fund’s assets to $2 billion as enthusiasm for artificial intelligence companies shows no sign of slowing. 

The GraniteShares 2x Long NVDA Daily ETF (NVDL) has pulled in $1.02 billion this year, with more than half—$545.8 million—recorded on March 11, etf.com data show. Combined with a nearly three-fold price gain so far this year, that’s pushed the fund’s assets under management to $1.98 billion as of early on March 13, according to Bloomberg data. 

New York-based GraniteShares, which manages $3.66 billion in 15 ETFs, split NVDL’s stock 6-for-1 yesterday. The fund fell 6.1% to $40.89 at midday today. 

Nvidia’s stock has jumped nearly four-fold over the past year as tech companies scramble to buy their semiconductors designed for AI applications. ETFs designed to magnify those gains, which also include the T-Rex 2X Long NVIDIA Daily Target ETF (NVDX), have skyrocketed.

“It took less than two weeks for NVDL to go from $1 billion to $2 billion in AUM, which is an insanely rapid ascent,” etf.com senior analyst Sumit Roy said. “About 70% of the increase was a result of inflows, while the rest came from the continued surge in shares of Nvidia, and by extension, NVDL.” 

Single-Stock Nvidia ETFs

Single-stock, or leveraged, ETFs began trading less than two years ago. They are intended for short-term investing, and use options and other tools to double the daily return of a stock.

GraniteShares has issued a handful of single-stock funds designed to capitalize on gains and declines in a stock, including the GraniteShares 2x Short NVDA Daily ETF (NVD). That fund, which seeks to double returns in falling Nvidia shares, has dropped 75% this year and has $33.6 million in assets. Most of those assets have come in the past few days, as $19.3 million has flowed in since March 4.