GraniteShares 2x Long BABA Daily ETF

Frequently Asked Questions About BABX

What does BABX invest in?

This Exchange Traded Fund (ETF) is designed to achieve daily investment outcomes that correspond to two times (200%) the daily percentage fluctuation of Alibaba Group Holding Limited's common stock (BABA), excluding operational costs and fees. There is no assurance that the Fund will consistently meet this target. Furthermore, investors should not anticipate that the fund will generate double the aggregate return of BABA for any duration exceeding a single day.

What is the expense ratio of BABX?

GraniteShares 2x Long BABA Daily ETF (BABX) charges an expense ratio of 1.20%. This is the annual fee deducted from fund assets to cover management and operations.

Is BABX a good long-term hold?

BABX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does BABX's daily reset work?

BABX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is BABX?

GraniteShares 2x Long BABA Daily ETF (BABX) manages $104.1M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is BABX actively managed or an index fund?

BABX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.