Direxion Daily NVDA Bear 1X ETF

Frequently Asked Questions About NVDD

What does NVDD invest in?

These Direxion Daily ETFs are designed to provide daily investment outcomes linked to the performance of NVIDIA Corporation's (NASDAQ: NVDA) common shares, before accounting for fees and expenses. Specifically, the Direxion Daily NVDA Bear 1X ETF (NVDD) aims for daily results reflecting 100% of the opposite movement of NVIDIA's stock, while the Direxion Daily NVDA Bull 2X ETF (NVDU) targets daily returns that are 200% of NVIDIA's stock performance.

What is the expense ratio of NVDD?

Direxion Daily NVDA Bear 1X ETF (NVDD) charges an expense ratio of 1.01%. This is the annual fee deducted from fund assets to cover management and operations.

Is NVDD a good long-term hold?

NVDD is a inverse 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 with 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 NVDD's daily reset work?

NVDD 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 NVDD?

Direxion Daily NVDA Bear 1X ETF (NVDD) manages $17.7M 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 NVDD actively managed or an index fund?

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