NVDL on Track to Become Second Billion Dollar Single Stock ETF

The Nvidia ETF is up nearly 500% over the past year.

sumit
|
Senior ETF Analyst
|
Reviewed by: etf.com Staff
,
Edited by: James Rubin

No exchange-traded fund has benefited more from Nvidia’s head-spinning price surge than the GraniteShares 2x Long NVDA Daily ETF (NVDL)

Up 119% so far this year, NVDL has returned more than all but one ETF in 2024, while over the past year, NVDL’s monster 483% gain is significantly more than any other fund.  

Such spectacular returns have caught the attention of traders, who have plowed $375 million into the ETF this year and $562 million into it over the past year.  

The combination of hefty inflows and sizzling performance pushed NVDL’s assets under management to $958 million on Friday, putting it on the brink of the $1 billion milestone.  

Were it to cross that vaunted level, NVDL would be just the second single stock ETF to do so. Last year, AUM in the Direxion Daily TSLA Bull 1.5X Shares (TSLL) reached nearly $1.2 billion. 

Since then, TSLL’s AUM dropped to $855 million as shares of Tesla underperformed. That means that NVDL is now the biggest single stock ETF on the market, which seems appropriate given how hot Nvidia is thanks to its dominant position in the AI chip industry.  

GraniteShares’ Cash Cow  

NVDL debuted in December 2022 just ahead of a fivefold increase in Nvidia’s stock. It’s one of 10 single-stock ETFs that issuer GraniteShares currently offers and recently became the largest of all the issuer’s funds, surpassing the GraniteShares Gold Trust (BAR)

But whereas BAR is a cheap fund with an 0.175% expense ratio, NVDL has a much larger 1.15% price tag. 

That type of expense ratio isn’t unusual for leveraged ETFs, which are typically used by short-term traders rather than long-term investors. And it makes them lucrative for the issuers who are able to attract significant sums of money into these products. 

With a 1.15% expense ratio and $1 billion in AUM, NVDL throws off $11.5 million of annual revenue, seven times more than BAR throws off with an equivalent asset base and an 0.175% expense ratio. 

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.