NVIDIA takes the lead, and funds flood into single-stock ETFs

Investors looking for thrills are turning to single-stock ETFs (exchange-traded funds). This is a relatively new financial product that aims to amplify the return of one stock using borrowed funds or derivatives (financial derivatives) contracts.

As an example, investors who are not satisfied with the 80% year-to-date rise in US image processing semiconductor giant NVDA.US (NVDA.US) stocks can invest in the “T-REX 2X LONG NVIDIA DAILY TARGET ETF (NVDX.US),” which aims to double the daily returns on NVIDIA stocks. This ETF, which can be obtained through accounts with most major securities companies, has risen 191% year to date. There are also similar ETFs where leveraged or inverse (contrarian) investments are possible in stocks with large price movements such as US electric vehicle (EV) giant Tesla (TSLA.US) and crypto asset (virtual currency) exchange company Coinbase Global A (COIN.US).