Daily Scoop🍨: ETF Darling For Nvidia (NVDA)
AI is coming closer to becoming a reality. The Q2 earnings from the so-called AI players will soon be examined in depth against their AI plans. Some analyst suggests looking at "a 'more stable' AI play". I won't use "AI" as a playground for this type of "defensive" strategy. AI to me is a fast growth opportunity, which is an inherently risky investment. I could choose not to believe it, or evaluate my risk tolerance together with the matching market environment, or start my betting on the "true" opportunity. I will feature a strategy that will use GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL) as the starting position to build an AI wealth grower in my portfolio and YieldMax NVDA Option Income Strategy ETF (NVDY) as a feeder pumping money into NVDL. Income investors can also sweeten the deal by selling the juicy covered calls and create "Option Wheel" on NVDL. The current retreat of NVDL should be a correction in nature which will lead to a healthier market for NVIDIA (NVDA). I believe it is time to start a powerful income growth engine that strives for an amazing total return with an "AI chip rush" tailwind on your side.
NVDL ETF Highlight
NVDL is a leveraged ETF actively managed by Graniteshares, with the following official goal statement:
The Fund seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the common stock of NVIDIA Corp.
The ETF has a pretty straightforward strategy. It relies on one underlying NVDA and is viewed as non-diversified. It uses swap agreements with major financial institutions to accomplish the designed daily financial effects.
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