In the world of exchange-traded funds (ETFs), the most outsized returns typically go to products employing leverage. However, while ETFs like the GraniteShares 2X Long NVDA Daily ETF (NASDAQ: NVDL)—a highly specialized vehicle aiming to provide two times the daily returns of NVIDIA Corp. (NASDAQ: NVDA), the semiconductor giant and largest company in the world by market value—may appear to have made tremendous growth of nearly 600% this year, they in fact employ investment strategies that strongly disfavor long-term buy-and-hold approaches.
Many such leveraged funds are designed to be traded on a daily basis, making them most suitable for active investors with a high risk tolerance.
