Share-split context: A reverse split was recorded on Nov 4, 2024 with coefficient 0.04. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

Understanding the GraniteShares 2x Short NVDA Daily ETF (NVD)

The GraniteShares 2x Short NVDA Daily ETF (NVD) is a specialized fund designed to move in the opposite direction of NVIDIA's stock price. Specifically, it is a leveraged inverse ETF, meaning it aims to provide twice the opposite daily return of its target stock.

What the Numbers Show

The data for NVD shows a significant decline in share price over several timeframes. Because this fund has a history of share splits, we look at split-adjusted returns to see how it has performed:

• Year-to-Date (YTD): The price return is -53.15%.

• One Year: The price return is -62.15%, while the total return (which includes distributions) is -57.58%.

• Three Years: The price return is -99.47%, and the total return is -99.26%.

The current price as of October 7, 2026, is $3.35.

Income and Distribution Explanation

NVD has a distribution yield of approximately 25.24%. However, the payout history is irregular and infrequent, with only one payout in the last 12 months totaling $0.85 per share.

It is important for new investors to remember that a high distribution yield can be misleading. In this case, the total return is significantly lower than the distribution yield because the share price has fallen sharply.

Price and NAV Erosion Explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Regarding price erosion, NVD has a severe erosion-risk flag. It has an erosion score of 10 and is labeled as having "severe price erosion." This means the split-adjusted price trend and the erosion score triggered a severe warning.

Additionally, NVD has a history of reverse splits. On November 4, 2024, a reverse split occurred. In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the per-share price. This mechanical increase does not restore lost investment value.

Pros

• Provides a way for investors to bet against the daily movement of a single stock.

• Offers a high distribution yield based on current price.

Cons

• Severe price erosion over the short and long term.

• High volatility due to being both leveraged and inverse.

• Irregular distribution frequency.

• Significant loss of value over a three-year period.

Beginner Takeaway

NVD is not a traditional "buy and hold" investment. It is a high-risk tool used for short-term trading. While the distribution yield looks high, the total return shows that the decline in share price has far outweighed the cash paid out to investors.