GraniteShares Launches 3 Leveraged Single-Stock ETFs: PDDL, NOWL, AVGU

GraniteShares has launched three new leveraged single-stock ETFs: GraniteShares 2x Long PDD Daily ETF (PDDL), GraniteShares 2x Long NOW Daily ETF (NOWL) and GraniteShares 2x AVGO Long (AVGU). These ETFs provide daily leveraged exposure to PDD Holdings, ServiceNow, and Broadcom Inc. respectively. They are designed for sophisticated investors seeking to capitalize on short-term movements in the underlying stocks.

GraniteShares, a prominent issuer of exchange-traded funds (ETFs), has recently launched three new leveraged single-stock ETFs designed to provide sophisticated investors with daily leveraged exposure to specific stocks. The new ETFs include GraniteShares 2x Long PDD Daily ETF (PDDL), GraniteShares 2x Long NOW Daily ETF (NOWL), and GraniteShares 2x AVGO Long (AVGU). These products aim to capitalize on short-term movements in the underlying stocks, PDD Holdings, ServiceNow, and Broadcom Inc., respectively.

Leveraged single-stock ETFs, which use derivatives to amplify the performance of a single security, have gained significant traction in recent years, particularly among retail traders. These products offer the potential for higher returns but come with increased risk, including the possibility of rapid declines. GraniteShares, which began offering leveraged single-stock ETFs in Europe in 2019, is well-positioned to capitalize on the growing demand for these products in the U.S. market [1].

The launch of these new ETFs follows a trend of increased regulatory permissiveness in the U.S. The Securities and Exchange Commission (SEC) has clarified its guidance on leveraged single-stock ETFs, effectively opening up the pool of potential candidates. This regulatory environment has facilitated the growth of the market for these products, with a record number of new funds launched in 2024 [1].

GraniteShares' strategy of targeting sophisticated investors seeking to capitalize on short-term movements aligns with the company's broader mission to disrupt the traditional ETF market. By offering more complex products that incorporate options strategies, GraniteShares aims to provide institutionally priced leverage to the market [1]. The company's focus on retail investors and its ability to access distribution channels that major players like BlackRock and Vanguard may not have, positions it well to compete in this rapidly growing market segment.

As with any leveraged product, investors should be aware of the risks associated with these ETFs. The leverage applied to each fund only works for a single day's return and must be reset daily at a cost to the ETF. This can erode performance over time and can lead to significant losses if the underlying stock moves against the position. It is essential for investors to understand these risks and ensure that these products align with their investment goals and risk tolerance.

In conclusion, GraniteShares' latest offerings represent a strategic move to capture the growing demand for leveraged single-stock ETFs among sophisticated investors. While these products offer the potential for higher returns, they also come with significant risks that investors must carefully consider.

References:
[1] https://www.bloomberg.com/news/features/2025-07-10/single-stock-etfs-lure-us-retail-traders-with-high-risk-funds