-
Leveraged ETFs that track the performance of Nvidia have soared this year.
-
The leveraged funds focused on the AI giant have attracted $5 billion from investors.
-
That amount is leagues beyond other single-stock ETFs that track mega-cap tech names.
A new type of exchange-traded fund has made waves over the past year: the leveraged single-stock ETF.
Instead of purchasing a basket of stocks like typical ETFs, these funds focus on a single name and add directional leverage to them, which can juice returns in a big way.
The T-REX 2X Long NVIDIA Daily Target ETF is up 425% year-to-date. That’s after Nvidia’s 16% correction over the past few days, during which leveraged bets on the chip maker soured, with the fund plunging 30% during the sell-off.
These funds are meant to be short-term day trading instruments, given the amount of leverage that they take on….
