GraniteShares 2x NVDA ETF underperforms NVIDIA stock due to daily reset and fees.

The GraniteShares 2x Long NVDA Daily ETF (NVDL) returned 17.21% over the past year, underperforming NVIDIA stock's 22.21% gain despite its 2x leverage goal. This shortfall is due to daily reset mechanics, swap financing costs, and volatility decay, which cause the fund to lose value during choppy market conditions. The fund's structure involves paying a financing rate to rent exposure daily, which adds hidden costs beyond the stated expense ratio. Investors seeking leverage might consider alternatives like direct NVIDIA shares or margin accounts, which avoid daily reset decay and fees associated with leveraged ETFs.