(NVD) GraniteShares 1.5x Short DA - Overview

The GraniteShares 1.5x Short NVDA Daily ETF (ticker NVD) is an actively managed ETF that seeks to deliver –200 % of the daily percentage change of NVIDIA (NVDA) stock. It does this by holding a combination of swaps and options that, at the close of each trading day, provide roughly double-short exposure relative to the fund’s net asset value. Because the exposure is reset daily, the ETF is non-diversified and its performance over longer horizons can diverge significantly from a simple –200 % multiple of NVDA’s cumulative return.

Key mechanics: the fund’s notional exposure is re-balanced each day, meaning that in periods of high volatility the compounding effect can erode value (a phenomenon known as “decay”). The ETF is classified under the “Inverse Equity” category and is subject to the same regulatory and margin requirements as other leveraged products.

From a market-driven perspective, NVDA has been a primary beneficiary of the AI boom, posting a year-over-year revenue increase of roughly 30 % in its most recent fiscal year and maintaining a forward-looking P/E ratio near 50×, reflecting strong growth expectations. However, the semiconductor sector remains sensitive to macro-level variables such as global chip supply constraints, cyclical demand shifts in data-center spending, and fluctuations in discretionary consumer electronics purchases. NVDA’s implied volatility (as measured by the 30-day VIX for its options) has hovered around 45 % annually, which amplifies both the upside potential and the decay risk for a leveraged inverse vehicle like NVD.

Given these dynamics, investors should treat NVD as a short-term tactical tool rather than a long-term holding, and they must monitor both NVDA’s earnings releases and broader semiconductor supply-chain indicators to gauge the likelihood of rapid price swings.

For a deeper, data-driven breakdown of NVD’s risk-adjusted performance metrics, you might find ValueRay’s analytical dashboards useful.