While single-stock inverse ETFs aren't suitable for everyone, they serve as high-alpha hedging tools for experienced investors who prefer taking a "long" inverse position over shorting individual stocks directly. Products like the GraniteShares 2x Short NVDA Daily ETF are designed as short-term tactical vehicles rather than buy-and-hold investments, requiring careful monitoring. While the author isn't currently holding NVD—relying instead on broad tech sector hedges like QQQ puts, PSQ, and SQQQ—the fund remains on a "buy" watchlist for an eventual market drop.
The S&P 500 was up about 17% in 2025, but has traded essentially flat so far in 2026, as investors wonder whether a prolonged rally may be about to give way to a major selloff—or whether a potentially overhyped AI market may collapse. For pessimists, one approach may be to focus on more stable stocks, including dividend payers, that can withstand potential upcoming volatility.
NVD is a specialized tool for short-term, leveraged trading of NVDA, not for long-term holding or buy-and-hold strategies. Daily reset and volatility drag make NVD unsuitable for holding periods longer than a few days, as losses compound over time. Costs, including bid-ask spreads and fees, are less relevant for day traders but significant for longer-term holders.
We have highlighted 10 ETFs that have seen higher average volumes in the third quarter and are thus the top 10 funds in terms of trading volume.