Understanding the GraniteShares 2X Long QCOM Daily ETF (QCML)

What this ETF is trying to do

The GraniteShares 2X Long QCOM Daily ETF (ticker: QCML) is a leveraged ETF. This means it is designed to seek a return that is twice (2x) the daily performance of its target. It is not an inverse fund, so it aims to go up when its target goes up, but it uses leverage to try to multiply those daily moves.

What the numbers show

The data shows that the share price of QCML has declined over recent periods.

• Year-to-Date (YTD): The price return is approximately -13.67%. Since no distributions were paid, the total return is also -13.67%.

• One-Year Return: The one-year price return is approximately -15.35%. Because there were no distributions, the one-year total return is also -15.35%.

• Price Comparison: The current price is $18.38. An estimated price from roughly one year ago was approximately $21.71.

Income and distribution explanation

Based on the supplied data, QCML does not currently provide income to investors. The distribution yield is 0%, and there have been no distributions detected in the last 12 months. Because there are no payouts, the income rating for this ETF is an "F" grade.

NAV erosion explanation

The data includes an erosion-risk score of 55, which is labeled as "Moderate price erosion." This score is a measurement used to look at how the share price has behaved over time.

It is important to understand that a falling market price is a share-price decline, which is different from NAV erosion. NAV (Net Asset Value) refers to the actual value of the assets held by the fund. 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.

Pros

• Leverage: For investors looking for amplified daily movement, this fund uses a 2x leverage strategy.

Cons

• Price Decline: The fund has experienced both year-to-date and one-year share-price declines.

• No Income: This ETF does not provide cash distributions or dividends to investors.

• Moderate Erosion Risk: The fund has a moderate erosion-risk score based on its price history.

Beginner takeaway

QCML is a leveraged ETF designed for daily targets, not long-term holding. Currently, the fund shows a declining share price and does not pay out any regular income. Investors should be aware that leveraged funds can experience significant price changes, and the moderate erosion-risk score reflects recent downward trends in the share price.