FNGU's Volatility Decay Demonstrated
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Yahoo Finance
- Significant Investor Losses: An investor who placed $10,000 in FNGU on June 1, 2026, saw a reduction of approximately 28.88% by the end of the month, while the Nasdaq-100 index only slipped 0.85%, highlighting FNGU's high-risk profile in volatile markets.
- Fee Structure Comparison: FNGU's annual fee of 0.95% contrasts sharply with QQQ and XLK's 0.08%, leading to thousands of dollars in additional costs over the long term, which adversely affects investment returns.
- ETN Credit Risk: As an ETN, FNGU holders are unsecured creditors of Bank of Montreal, meaning that in the event of a bank default, investors could face total loss, adding uncertainty to their investment.
- Market Performance Discrepancy: Despite the VIX fluctuating between 15.40 and 22.22 in June 2026, FNGU suffered significant losses due to its daily reset leverage, demonstrating its vulnerability in market volatility and prompting investors to carefully assess its suitability as a trading tool.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 195.550
Low
200.00
Averages
264.97
High
352.00
Current: 195.550
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Nebius Revenue Surge: Nebius (NBIS) reported a staggering 684% revenue growth in Q1, with analysts projecting 459% growth in Q2, making it an opportune time to invest as the company rapidly expands into an AI computing giant.
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See More
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See More
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- Surge in Storage Demand: Sandisk, Micron, and Western Digital achieved revenue growth of 640%, 650%, and 45% respectively in the first half of 2023, indicating a rapid rise in demand for memory and storage solutions driven by AI applications, making them new market favorites.
- Impact of Inference Computing: Western Digital's CEO highlighted that inference is expected to account for two-thirds of AI compute, increasing data generation needs that will further drive demand for storage solutions, ensuring ongoing growth potential for related companies.
- Long-term Investment Value: While storage companies have recently outperformed, GPU designers like Nvidia will still play a crucial role in the future of AI, making reasonably valued companies great long-term investment choices.
See More
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- Surge in Storage Demand: Sandisk, Micron, and Western Digital achieved revenue growth of 640%, 650%, and 45% respectively in the first half of 2023, indicating a rapid increase in demand for memory and storage driven by AI applications, which may continue to enhance their market performance.
- Rise of Inference Computing: Western Digital's CEO noted that inference is expected to account for two-thirds of all AI compute, a trend that will further increase data storage needs and drive ongoing demand for products from related companies.
- Long-Term Investment Potential: While memory and storage companies have shown strong short-term performance, GPU designers will still play a crucial role in the future phases of AI development, making reasonably valued companies attractive long-term investment options.
See More
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- Strategic Investment Plans: The raised funds will primarily be allocated to expanding production capacity at its Yongin complex in South Korea, constructing an advanced packaging facility, and acquiring extreme ultraviolet (EUV) lithography scanners, directly supporting the output increase of HBM and other advanced DRAM products to ensure competitive advantage in future markets.
- Institutional Investor Support: The offering has attracted interest from notable institutional investors, including Baillie Gifford, Coatue Management, and Situational Awareness, who collectively indicated a non-binding interest in purchasing up to $7 billion in shares, which not only mitigates listing risks but also enhances market confidence in SK Hynix's growth potential.
See More
