(NVDL) GraniteShares 1.5x Long DA - Ratings and Ratios

The GraniteShares 1.5x Long NVDA Daily ETF (NASDAQ:NVDL) is an actively managed exchange-traded fund designed to deliver 1.5 times the daily percentage change of NVIDIA Corporation (NVDA) stock. The fund employs a range of financial instruments, including total return swaps, options, and direct equity holdings, to achieve its objective. While it primarily relies on swap agreements for notional exposure, it may also engage in direct purchases of NVDA shares to meet market conditions. As a non-diversified fund, it can concentrate its holdings in a smaller number of securities, which may amplify both returns and risks. The fund is structured to reset daily, meaning it seeks to deliver 1.5x the performance of NVDA each trading day, rather than compounding over longer periods.

From a technical perspective, NVDL is currently trading at $36.23, below its 20-day SMA of $33.84 but significantly below its 50-day SMA of $42.84 and 200-day SMA of $59.53. This indicates a bearish trend over the medium to long term. The average true range (ATR) of 4.29 suggests moderate volatility, while the average 20-day volume of 22,990,000 shares reflects decent liquidity. With an AUM of $3.199 billion, the fund commands significant assets under management, indicating strong investor interest in leveraged exposure to NVDA.

Looking ahead, over the next three months, NVDLs performance will likely remain closely tied to NVDAs stock movements, amplified by its 1.5x leverage. If NVDA continues its downward trend, NVDL could face further declines, potentially testing its 200-day SMA as resistance. However, if NVDA experiences a rebound, NVDL could outperform due to its leverage. The funds ability to maintain its tracking objective will depend on market conditions and the effectiveness of its swap agreements. Investors should monitor NVDAs fundamentals, including its earnings reports and industry trends, as these will directly impact NVDLs performance.