(NVDQ) T-Rex 2X Inverse IDIA Daily - Ratings and Ratios

The T-Rex2X Inverse NVIDIA Daily Target ETF (NVDQ) is designed to deliver 200% inverse exposure to the daily performance of NVIDIA (NVDA), meaning it aims to provide a return that is opposite to NVDAs daily return, amplified by a factor of two. This is achieved through the use of swap agreements with major global financial institutions, which are financial derivatives that allow the ETF to gain the desired inverse exposure without directly holding NVDA shares.

The ETFs investment strategy is centered around these swap agreements, which are reset daily to maintain the 200% inverse exposure. This means that the funds performance over periods longer than a day can significantly diverge from twice the opposite performance of NVDA due to the compounding effect of daily returns. As a non-diversified fund, NVDQs investment portfolio is heavily reliant on the performance of NVDA, making it a highly specialized and potentially volatile investment vehicle.

Analyzing the available , the current price of NVDQ is $1.93, which is significantly lower than its 52-week high of $10.85 but only slightly higher than its 52-week low of $1.90. The short-term moving averages (SMA20 at $2.58 and SMA50 at $3.15) indicate a downtrend, suggesting that the ETF has been underperforming in the short to medium term. The Average True Range (ATR) of 0.33, representing 17.22% of the current price, indicates a relatively high volatility.

Considering the , the Assets Under Management (AUM) for NVDQ stand at $35.28M USD, indicating a relatively small ETF. This could potentially impact liquidity, although the ETFs trading volume and bid-ask spread would provide a more comprehensive picture.

Forecasting the future performance of NVDQ requires analyzing both the technical and fundamental data. Given the current downtrend indicated by the short-term moving averages and the high volatility, a cautious approach is warranted. If NVDA experiences a significant downturn, NVDQ could potentially benefit due to its inverse exposure. However, if NVDA rallies, NVDQs value could decline sharply. Considering the current price is near its 52-week low, a potential bounce or consolidation could occur, but the overall trend and NVDAs future performance will be crucial. A detailed analysis of NVDAs prospects, including its financials, industry trends, and competitive positioning, would be essential for making an informed decision about NVDQs potential future performance.