ETF Education Report: GRANITESHARES 2X LONG LCID DAILY ETF (LCDL)

What this ETF is trying to do

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

What the numbers show

The current price of one share is $0.29. When we look at how the share price has changed over time, the numbers show a significant decline.

The one-year price return is approximately -98.35%. To understand how much the price has dropped, we can look at an estimated price from roughly one year ago, which was about $17.45.

For example, if an investor had put $10,000 into this ETF one year ago, that investment would be worth approximately $164.80 today based on the share-price change alone.

The year-to-date (YTD) price return is approximately -91.18%. The YTD total return is also -91.18%, which means the overall return including distributions matches the share-price movement. Total-return data for the three-year period was not supplied.

Income and distribution explanation

Some investors look for ETFs that pay out cash, known as distributions. For this ETF, the distribution yield is 0%. No distributions were detected over the last 12 months.

NAV erosion explanation

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

It is important to understand what "NAV erosion" means. NAV stands for Net Asset Value, which is the actual value of the assets held by the fund. While a falling market price is a "share-price decline," a severe erosion-risk flag indicates that the fund has experienced substantial price deterioration.

When an ETF's share price falls from a high amount (like $17.45) to a very low amount (like $0.29), it can destroy the principal. Principal is the original amount of money you put in. When prices collapse this significantly, it becomes very difficult for the investment to recover its original value.

Pros

• There are no pros listed in the supplied data.

Cons

• Severe Price Decline: The share price has dropped by over 98% in one year.

• High Erosion Risk: The fund has a severe erosion-risk flag and a high erosion-risk score.

• No Income: The fund is not currently providing any cash distributions.

Beginner takeaway

This ETF has experienced a very large share-price decline over the past year. When you see a "severe erosion-risk flag," it means the price has dropped so much that the original investment (the principal) has been significantly reduced. For many investors, especially those looking for steady income, a fund that collapses in price is very different from a fund that stays stable or grows slowly.