By Omor Ibne Ehsan
Publication Date: 2026-05-25 13:15:00
Quick Read
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GraniteShares 2x Long NVDA Daily ETF (NVDL) lost 68% from peak to trough during the early 2025 drawdown while Nvidia (NVDA) fell roughly 35%, demonstrating how daily rebalancing creates path dependency that amplifies losses in choppy markets; the fund cost holders approximately 5% to 8% annually in structural drag before underlying price movement. NVDL works as a tactical short-term instrument but bleeds value over multi-week or multi-month holds due to volatility decay and nightly reset mechanics.
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Daily rebalancing in leveraged ETFs compounds losses during volatile downturns because the fund rebalances at each close, meaning a stock that returns to flat can leave the 2x ETF significantly underwater due to the mathematical impact of percentage losses and gains applied sequentially.
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The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.
The pitch behind GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL) is elegantly simple. You want more NVIDIA (NASDAQ:NVDA) than your account can hold, so NVDL gives you two dollars of exposure for every dollar invested, recalibrated each morning.
The analyst who called NVIDIA in 2010 just named his top 10 stocks. Get them here FREE.
The mechanic that makes that possible is also the mechanic that gutted holders during the early 2025 drawdown, when NVDL lost 68% from peak to trough on April 4, 2025, while the underlying stock fell roughly 35% over the same stretch….
