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Investors in the T-Rex 2X Inverse Nvidia Daily Target ETF (BATS:NVDQ) is facing significant losses as shares of Jensen Huangled Nvidia Corp. (NASDAQ:NVDA) is experiencing a remarkable stock rally.
According to Benzinga Pro, the T-Rex ETF has seen a dramatic 96% drop in investor wealth over the past year. This stark contrast comes as Nvidia shares have risen 221.08% over the same period.
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However, it’s worth noting that the T-Rex ETF is designed to deliver inverse investment results on a daily basis, meaning its long-term performance may not reflect Nvidia’s stock trends. It targets a daily return of 200% of the inverse of Nvidia’s daily performance, setting it apart from conventional ETFs.
Simply put, this ETF is designed to gain value when Nvidia’s stock price falls and lose value when Nvidia’s stock price rises. It achieves this by using derivatives, such as options or futures, to bet on Nvidia’s stock performance.
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Meanwhile, Nvidia remains a leader in the chip industry, with shares closing up 0.8% at $138 on Friday, pushing its market cap to more than $3 trillion. Experts like Ram Ahluwalia by Lumida Asset Management are optimistic about Nvidia’s potential to reach a $4 trillion valuation, citing strong demand for GPU chips.
Additional, Then Niles from Niles Investment Management predicts that Nvidia’s revenues and shares could double in the coming years, driven by AI investments. Goldman Sachs And Bofa effects have also raised their price targets for Nvidia, reflecting confidence in its growth prospects.
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Disclaimer: This content was produced in part with the help of Benzinga Neuro and was reviewed and published by Benzinga’s editorial staff.
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This article Investors Lost More Than 95% of Their Assets in This Nvidia-Linked ETF, While Jensen Huang-Led Chip Giant Gained 220% in the Last Year: Here’s More originally appeared on Benzinga.com
