Inverse Nvidia ETF Explained and Compared

Inverse Nvidia ETFs are designed to perform well when the underlying stock, Nvidia, does poorly. They're often used as a hedging tool or to express a bearish view on the company.

If you're new to inverse ETFs, it's essential to understand how they work. An inverse ETF typically uses various strategies, such as short selling or derivatives, to generate returns that are the opposite of the underlying stock's performance.

The Inverse Nvidia ETF is a relatively new investment product, launched in 2020, and has a 3-year track record. This ETF is designed to track the inverse performance of Nvidia's stock, aiming to provide returns that move in the opposite direction of the company's share price.

Investors can use inverse ETFs to hedge their existing Nvidia stock holdings or to take a bearish stance on the company.

The Inverse Nvidia ETF is a type of exchange-traded fund that allows investors to profit from a decline in Nvidia's stock price.

It's designed to provide the opposite return of Nvidia's stock, meaning if Nvidia's stock goes down, the ETF goes up, and vice versa.

Inverse Nvidia ETFs typically use derivatives such as futures contracts or options to track the inverse performance of Nvidia's stock.

These derivatives can be volatile and may result in significant losses if not used correctly.

The Inverse Nvidia ETF is often used by investors who are bearish on Nvidia's stock and want to profit from a decline in its price.

Investors should be aware that inverse ETFs can be complex and may involve higher fees than traditional ETFs.

The Inverse Nvidia ETF is not suitable for all investors, especially those who are new to the stock market or are risk-averse.

The Direxion Daily NVDA Bear 1X Shares (NVDD) is a one-name ETF that attempts to match the inverse performance of NVDA stock.

It's launched by Direxion, which is the same company that created the product, and it's designed to be a convenient way to short Nvidia.

The NVDD is unlikely to expire worthless, which is a benefit over put options.

This ETF is specifically designed for those who are bearish on Nvidia but not other tech players.

It's almost like acquiring a put option, but with the added benefit of not expiring worthless.

The T-REX 2X Inverse NVIDIA Daily Target ETF has a portfolio turnover rate of 0%, which means it holds its assets for a very long time.

This is much lower than the average portfolio turnover rate of 1887% for the Trading--Inverse Equity category.

In December 2024, the T-REX 2X Inverse NVIDIA Daily Target ETF returned 3.4%, earning it a grade of C.

This return was lower than the average return of 5.4% for the Trading--Inverse Equity category, which is why it received a grade of C.

The ETF's low portfolio turnover rate and relatively low return may be worth considering for investors who want to minimize expenses and fees.

The T-REX 2X Inverse NVIDIA Daily Target ETF has a very low expense ratio, which can help investors keep more of their returns.

It's worth noting that the ETF's expense ratio is not explicitly stated in the provided information, but its low portfolio turnover rate suggests that it may be a low-cost option.

In any case, it's always a good idea to carefully review an ETF's fees and expenses before investing.

Inverse NVIDIA ETFs offer a unique way to invest in the opposite of NVIDIA's stock performance.

The Inverse NVIDIA ETFs can be a useful tool for investors who want to profit from a decline in NVIDIA's stock price.

For example, if NVIDIA's stock price falls by 10%, an inverse ETF that tracks the opposite of NVIDIA's performance would increase by 10%.

This can be especially useful for investors who are bearish on the tech industry or have a contrarian investment strategy.

Investors should carefully consider their investment goals and risk tolerance before investing in inverse ETFs, including those that track NVIDIA's performance.

The T-Rex 2x Daily Target ETF is an actively managed Miscellaneous Trading--Inverse Equity exchange-traded fund (ETF) launched by Tuttle Capital Management, LLC in 2023. The ETF seeks daily investment results of 200% of the inverse (or opposite) of the daily performance of NVDA.

Matthew Tuttle is the management team member with an average tenure of 1.21 years. The fund is non-diversified and has a management tenure that's more important for actively managed ETFs than passive index ETFs.

The T-Rex 2x Daily Target ETF has 4 securities in its portfolio, with the top 10 holdings constituting 100.0% of the ETF's assets. The fund meets the SEC requirement of being classified as a non-diversified fund.

The ETF has a yield of 4.6% and total assets of $45 million. It's not considered to have an ESG focus with its investment selection and management.

The T-Rex 2x Daily Target ETF has a turnover of 0.0% and an expense ratio of 1.05%. It's a leveraged ETF with a daily target of -200% of the value of NVDA.

Here's a breakdown of the fund's portfolio allocation:

Note that the fund has a significant allocation to domestic bonds and other assets.

Selling an ETF short can be a complex process that requires a margin account and a stock loan fee, which can drive up costs. The cost of borrowing shares to short can exceed 3% of the borrowed amount.

Inverse ETFs, on the other hand, offer a more accessible alternative, with expense ratios often below 2%. This makes it easier and less costly for an investor to take a position in an inverse ETF.

Investors who sell individual stocks short must also worry about the risk of the security's value rising instead of falling, which can lead to significant losses. This risk is inherent in short selling.

Inverse ETFs, by contrast, allow investors to gain exposure to a market's decline without the need to sell individual stocks short. This can be a more straightforward and less costly approach.

The Tradr 1.5X Short NVDA Daily ETF (NVDS) is an interesting option for those bearish on Nvidia. It has a contractually agreed fee waiver to ensure total annual fund operating expenses don't exceed 1.15%.

This agreement is in place until July 31, 2025, providing investors with a clear understanding of their costs.

Traders may use inverse ETFs to profit from or hedge against declines in a specific market.

Inverse ETFs can be a valuable tool for short-term traders who want to speculate on downward moves.

Traders may use inverse ETFs to profit from declines in a specific market, such as the tech industry, where Nvidia is a major player.

Short-term traders can use inverse ETFs to speculate on downward moves, which can be a high-risk but potentially high-reward strategy.

By using an inverse Nvidia ETF, traders can potentially profit from a decline in Nvidia's stock price.

An inverse ETF, like an inverse NVIDIA ETF, is a fund that uses derivatives to profit from a decline in the value of an underlying benchmark.

Inverse ETFs allow investors to make money when the market or the underlying index declines, without having to sell anything short.

They tend to have higher management fees compared to traditional ETFs, which can eat into your returns.

Inverse ETFs are only intended for short holding periods, so you should be prepared to sell or adjust your investment quickly if the market starts to rise.