The GraniteShares ETF also broke through its net monthly inflow record in the first six days of this month, and the amount of assets under management has grown from US$2137.5 million at the beginning of this year to US$1.41 billion.
As the boom in AI technology continues to heat up, investors$NVIDIA (NVDA.US)$Enthusiasm is growing. In particular, leveraged ETF funds that focus on tracking Nvidia shares have recently shown strong appeal.
According to LSEG Lipper data, this Wednesday,$GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$The daily net capital inflow reached a record 197 million US dollars.
$GraniteShares 2x Long NVDA Daily ETF (NVDL.US)$,$DIREXION DAILY NVDA BULL 1.5X SHARES (NVDU.US)$ with $T-REX 2X LONG NVIDIA DAILY TARGET ETF (NVDX.US)$ These three leveraged ETFs tracking Nvidia all set records for net monthly inflows in February.
Among them, the GraniteShares ETF broke through its net monthly inflow record in the first six days of this month, and the amount of assets under management has grown from US$2137.5 million at the beginning of this year to US$1.41 billion.
Since this year, the asset size of these three ETFs has increased 5 to 11 times, and their net worth has increased between 143% and 218%, outperforming other ETFs.
The reason behind this phenomenon is that investors are confident about Nvidia's dominant position in the AI chip market. The company currently controls about 80% of the high-end AI chip market share. Coupled with a cumulative increase of nearly 82% since the beginning of the year, Nvidia's stock price has further fueled positive market expectations.
It should be noted that this type of leveraged ETF aims to use financial derivatives and debt as leverage to amplify the return of stocks in a single day, usually two to three times. Although this type of ETF is aimed at speculators willing to take higher risks in order to obtain higher returns, its rapidly growing asset size and appeal should not be underestimated.
The media quoted Vettafi's chief ETF strategist Todd Rosenbluth as saying:
“Nvidia is the hottest stock in 2024, and many investors are willing to take additional risks to seek higher returns.”
“With the emergence of a new wave of 'must-invest' companies, we expect demand for single-stock leveraged ETFs to continue to grow.”