As Lydon explains, the reasoning for having these funds is due to more optionality for individual investors and sophisticated traders who don’t necessarily want to use all of the cash they have on the sidelines. They can also go inverse, and most investors must fill out options and margins agreements to do that. This is an excellent way for them to hedge, even if it means keeping an eye on things daily. Lydon adds, “It’s also a great way to get heading instruments from financial advisors. As the market has been really volatile, the stocks that these represent are great opportunities to pick them up off the bottom, or, if you’re not happy about them, you can buy the short side without having to do any margin.” Essentially, these leveraged and inverse single-stock ETFs only reflect single-day moves, so long-term investors may find that the actual performance goes beyond or falls short of their intended leverage or inverse, depending on market volatility. "If you feel like these stocks are going to go south, you can go in for a given day, and on the AXS 1.25X NVDA Bear Daily ETF (NVDS ), you can get that leverage to the downside, and short by using, ultimately, a long vehicle."