Nvidia's 4.34% Drop Sends Two 2x ETFs in Opposite Directions

By Sophie Lindqvist

Nvidia shares fell 4.34% to $166.19 on Thursday, sliding from $173.73 as of 4:06 p.m. ET. The board announced that Jensen Huang had resigned as president, chief executive officer and a member of the board, effective immediately, and CFO Colette Kress agreed to serve as interim CEO.

The announcement followed reports that Huang had a relationship with a businesswoman whom U.S. intelligence officials suspected of spying for China, according to Reuters. Beijing denied the allegation. The New York Times separately reported that Huang had a relationship with an NVIDIA executive who reported directly to him.

Neither report established wrongdoing, and the published item resolved neither claim. The announcement also disclosed no revised financial guidance, order outlook or product roadmap, so the session priced a leadership shock rather than a documented change in Nvidia's business.

What did the two 2x funds do?

The same headline produced opposite results. The T-Rex 2X Long NVIDIA Daily Target ETF (CBOE: NVDX), which "aims for twice Nvidia's daily return," fell 8.99% to $10.43.

The GraniteShares 2x Short NVDA Daily ETF (NASDAQ: NVD), which "aims for twice the inverse of Nvidia's daily return," rose 9.03% to $6.40. Both fund prices were quoted at 4:05 p.m. ET.

• NVDA, the underlying stock: Thursday -4.34%; one-month -27.28%
• NVDX, 2x daily return: Thursday -8.99%; one-month -49.25%
• NVD, -2x daily return: Thursday +9.03%; one-month +77.29%

The mirror image looks tidy on one day and says little about a holding period. NVDX lost about twice the stock's decline, and NVD gained about twice its decline, which is what each fund promised for a single session, and no more.

Why 2x did not produce 54.55%

Nvidia has dropped about 27.28% from its October 13 close of $228.52 and traded near its 52-week low of $163.90. Doubling that decline points to roughly 54.55%, yet NVDX lost 49.25% over one month and NVD gained 77.29%.

The difference comes from the daily reset. Each fund rebalances every session to target 2x, or minus 2x, of that day's move, so returns compound day by day rather than tracking the cumulative decline. In a steady downtrend, a long fund's losses come off a shrinking capital base while a short fund's gains build on a growing one, which is why the month's slide helped both sides relative to simple arithmetic.

Volatility reverses that advantage. A stock that rises 10% and then falls 10% ends down about 1%. A 2x fund records 20% and minus 20% over the same two days and ends down about 4%. That gap is volatility drag, and it damages long and short funds alike.

What do the longer windows show?

Since the December 31, 2025 close, Nvidia is down about 10.68%, NVDX is down 39.08%, and NVD is down 10.49%. Both leveraged funds lost money in a year when the underlying moved only modestly, which is the clearest evidence that time and volatility can punish both sides.

Over a longer window, NVD's adjusted price has fallen 98.61% since August 22, 2023. The published analysis does not explain whether reverse splits, distributions or the reset mechanics account for that adjusted figure, so it cannot support a price forecast.

Fees add to the drag. NVDX lists a 1.05% gross and net expense ratio in a prospectus dated November 6, 2026. NVD lists a 1.42% gross and 1.30% net expense ratio in a prospectus dated October 28, 2026. Both funds are short-term trading instruments, and the article gives no holding-period cost estimate beyond those ratios.

Nvidia carries a beta of 2.247, meaning it has historically swung more than the broad market. Because each fund doubles the daily move, one severe session can erase most of a leveraged fund's value and leave little capital to recover.

What did retirement investors actually feel?

Most index fund holders met the selloff through S&P 500 funds, Nasdaq-100 trackers, and technology or semiconductor ETFs. Nvidia carries a large weight in many such vehicles, often limited by index weighting rules, and sits alongside dozens or hundreds of other holdings.

24/7 Wall St. argued that this structure reduced Thursday's drop for a typical 401(k) or IRA investor, while Nvidia's size kept the loss noticeable in technology-heavy portfolios. The original item also carried a sponsored Fisher Investments guide on retirement income, which adds no evidence about Nvidia or the leveraged funds.

What happens next?

Nvidia is scheduled to report third-quarter fiscal 2027 results on Tuesday, November 17, with its first earnings call under interim leadership. CNBC reported that Huang agreed to testify before Congress before Thanksgiving. Either event could produce the single-day move that leveraged holders feel twice over, and the article offers no scenario analysis for either.

If volatility around the November 17 call matches Nvidia's 2.247 beta, the daily reset will keep pulling both leveraged funds away from simple two-times multiples, whatever direction the stock takes.