Will Rhind, Graniteshares founder and CEO, joins CNBC's Bob Pisani to discuss how global investors are getting into the U.S. market with single-stock ETFs, the growing opportunity for these new products, risks to consider and more.
AMDL is a leveraged ETF seeking 2x daily returns of AMD stock, offering a day trading vehicle for those seeking additional risk. Holding AMDL for longer than a day can result in compounding effects, leading to excess gains or losses beyond the 2x target. AMDL should not be held as a buy-and-hold strategy given the daily reset. This will result in amplified returns or losses beyond the 2x target.
NASDAQ (NMS) Exchange | US Country |
The fund represents a specialized investment vehicle that seeks to amplify investment results through a strategic approach focused on replicating twice the daily movement of its designated underlying stock. By dealing in swap agreements linked to the performance of this stock, the fund positions itself to achieve a leveraged outcome, essentially offering the potential for doubled returns on the stock's daily performance. However, this strategy also incurs a higher level of risk, correlating with the leveraged exposure. The fund remains non-diverse, underscoring its targeted investment strategy on a singular underlying asset rather than spreading risk and investment across a broader array of securities.
The fund's primary offering involves leveraging sophisticated financial instruments and strategies to provide investors with an opportunity to potentially amplify their investment returns by tracking twice the daily performance of a specific underlying stock. The main product and service include: