NVIDIA 2x ETF Falls Short of Promise Amid Market Volatility

NVIDIA's GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL) has failed to deliver on its promise of doubling the stock's returns. Over the past year, NVIDIA stock returned a substantial 22.21%. However, NVDL returned only 17.21%, falling short of its intended two-times leverage.

This discrepancy can be attributed to the fund's design, which involves daily resets and swaps. The fund charges investors through these swaps, rather than traditional fees. This means that the true annual carry on a single-stock 2x product can quietly run well above the sticker fee, especially when compared to simply owning NVIDIA shares.

The past year has been a prime example of this issue. With the VIX spiking to 31.05 on March 27, 2026, NVDL's daily rebalancing strategy resulted in it lagging behind NVDA's performance. This highlights the problem with relying on daily resets and swaps.

Investors have alternatives to consider. Owning NVIDIA shares directly costs zero fund fee and avoids daily-reset decay. A margin account with plain NVDA shares also provides leverage without a daily reset, at broker-set financing rates that are transparent.