2X Nvidia ETFs Show Wide Return Disparities Over 13 Months
Between September 2025 and October 2026, NVIDIA Corporation (NVDA) gained 34.8%, but daily 2x leveraged exchange-traded funds tracking the chipmaker produced widely different results. Over the same 13-month period, returns for 2x Nvidia funds ranged from 31.8% to 39.5%, creating a gap of nearly eight percentage points between the top performer, Direxion Daily NVDA Bull 2X ETF (NVDU), and the lowest performer, T-REX 2X Long NVIDIA Daily Target ETF.
The divergence occurs because leveraged funds aim to double daily stock performance rather than cumulative long-term gains. Daily rebalancing causes returns to compound session by session, meaning market volatility and price fluctuations alter overall outcomes. Small differences in annual expense ratios, financing fees, and tracking accuracy also contribute to performance gaps over extended holding periods.
Investors evaluating single-stock leveraged funds should look beyond short-term performance and examine how effectively each fund meets its daily objective. Key factors to track include expense ratios, portfolio execution costs, net asset value versus market price performance, and overall fund liquidity.
Key points
- NVIDIA Corporation (NVDA) rose 34.8% from September 2025 to October 2026, but 2x leveraged funds tracking it returned between 31.8% and 39.5%.
- Direxion Daily NVDA Bull 2X ETF (NVDU) delivered the highest return at 39.5%, while T-REX's fund logged the lowest at 31.8%.
- Leveraged ETFs target double daily performance rather than long-term returns, causing compounding and volatility to skew overall gains.
- Expense ratios, derivative costs, and daily tracking accuracy explain performance variances across funds tracking the same stock.
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How we writeDisclaimerQuestions and answers
Why do 2x Nvidia ETFs not deliver double Nvidia's total return?
Leveraged ETFs reset daily to target twice the stock's single-day return, not its multi-month cumulative total. Price volatility, daily compounding, fees, and financing costs cause returns to diverge over longer periods.
Which 2x Nvidia ETF performed best over the 13-month period?
Direxion Daily NVDA Bull 2X ETF (NVDU) was the top performer, returning 39.5% compared to 31.8% for the lowest-performing fund from T-REX over the same 13-month timeframe.
What factors cause performance differences between leveraged Nvidia ETFs?
Key differences stem from expense ratios, daily tracking execution, financing and derivative costs, portfolio management, and price distributions across different ETF managers.