Double Edged ETFs: A Cautionary Tale of Leverage and Loss The allure of doubling down on a stock's potential returns has long been a siren song for investors.
Leveraged exchange traded funds (ETFs) promise to amplify gains, but the recent performance of GraniteShares' 2x Long NVDA Daily ETF (NASDAQ:NVDL) serves as a stark reminder that this dream can quickly turn into a nightmare.
NVDL's underwhelming returns are largely due to the complex web of fees and financing charges associated with its swap based structure.