ETF Report: GRANITESHARES 2X LONG IONQ DAILY ETF (IONL)

What this ETF is trying to do

This ETF, trading under the ticker IONL on the NASDAQ, is an exchange-traded fund. Based on its name, it is designed to provide leveraged exposure to IonQ.

What the numbers show

The current price of IONL is $16.20. When we look at how the share price has changed over time, we see a significant decline.

The one-year price return is approximately -67.45%. To understand this, we can look at an estimated price from roughly one year ago, which was about $49.77. If an investor had put $10,000 into this ETF one year ago, that investment would have dropped to approximately $3,255.12 based on the share-price change alone.

The year-to-date (YTD) price return is approximately -50.83%. For this specific ETF, the YTD total return and the YTD price return are the same at -50.83%.

Income and distribution explanation

Some investors look for ETFs that pay them cash regularly, known as distributions. For IONL, the distribution yield is 0%. There have been no distributions detected over the last 12 months.

NAV erosion explanation

This ETF has a severe erosion-risk flag. It also has an erosion score of 10, which is labeled as "Severe price erosion."

In the world of investing, we talk about "NAV erosion." NAV stands for Net Asset Value, which is essentially the actual value of the assets held by the fund. While a falling market price does not always mean the NAV has dropped, a "severe erosion-risk flag" means that the fund has experienced substantial price deterioration.

When a share price falls from a high point (like the estimated $49.77) to a much lower point (like $16.20), it can destroy the principal—the original amount of money an investor put in. Income investors usually prefer ETFs where the price stays steady or goes up slightly, because if the price collapses, any cash earned is often lost to the drop in value.

Pros

• The data provided does not list any specific pros for this ETF.

Cons

• There has been a significant share-price decline over the last year.

• The ETF shows a severe erosion-risk flag.

• There are no distributions or cash payments being made to investors.

Beginner takeaway

IONL has experienced a very large decline in its share price over the last year. Because it has a severe erosion-risk flag, investors should be aware that the price has dropped significantly from its estimated levels one year ago. This report is for educational purposes only and is not financial advice.