GraniteShares 2x Long NVDA ETF gains 12.66% YTD but faces volatility risks from daily leverage reset.

GraniteShares 2x Long NVDA Daily ETF (NVDL) has gained 12.66% year-to-date and 72.86% over the past year, outperforming the S&P 500 ETF. The fund aims to deliver twice the daily price movement of NVIDIA stock, but its daily leverage reset causes volatility decay, making long-term returns path dependent and sometimes lower than a simple 2x multiple. Recent sharp declines highlight the risks of holding NVDL through volatile periods. Investors should consider their time horizon: NVDL suits short-term trades seeking amplified exposure, while long-term holders might prefer owning NVIDIA stock directly to avoid leverage decay. Future performance depends on NVIDIA's AI revenue growth, stock volatility, and regulatory changes around leveraged ETFs.