Investors Lost Over 95% Of Their Wealth In This Nvidia-Linked ETF While Jensen
Huang-Led Chip Giant Gained 220% In The Past Year: Here's More
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Investors in the T-Rex 2X Inverse Nvidia Daily Target ETF (BATS:NVDQ) are grappling with significant
losses as shares of Jensen Huang-led Nvidia Corp. (NASDAQ:NVDA) experience a remarkable stock surge.
As per Benzinga Pro, the T-Rex ETF has seen a dramatic 96% decline in investor wealth over the past
year. This stark contrast comes as Nvidia’s stock has soared by 221.08% during the same timeframe.
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However, it is noteworthy that the T-Rex ETF is designed to achieve daily inverse investment results,
meaning its long-term performance may not mirror Nvidia’s stock trends. It aims for a daily return of
200% of the inverse of Nvidia’s daily performance, setting it apart from conventional ETFs.
Simply put, this ETF is designed to gain value when Nvidia's stock price decreases and lose value when
Nvidia's stock price increases. It achieves this by using derivatives, such as options or futures, to
bet against Nvidia’s stock performance.
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Meanwhile, Nvidia remains a leader in the chip industry, with its shares closing up 0.8% at $138 on
Friday, boosting its market capitalization to over $3 trillion. Experts like Ram Ahluwalia from Lumida
Wealth Management are optimistic about Nvidia’s potential to reach a $4 trillion valuation, citing
strong demand for GPU chips.
Additionally, Dan Niles of Niles Investment Management forecasts that Nvidia’s revenues and stock could
double in the coming years, driven by AI investments. Goldman Sachs and Bofa Securities have also
increased their price targets for Nvidia, reflecting confidence in its growth prospects.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and
published by Benzinga editors.
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This article Investors Lost Over 95% Of Their Wealth In This Nvidia-Linked ETF While Jensen Huang-Led
Chip Giant Gained 220% In The Past Year: Here's More originally appeared on Benzinga.com