Single-stock ETFs have been one of Wall Street’s hottest trades this year thanks to eye-popping returns and billions of dollars in inflows. Now, one issuer is kicking off a fee war in a bid to stand out and attract new cash.
Leverage Shares, which on Friday launched two funds offering juiced up returns on either Nvidia Corp. or Tesla Inc., in a press release touted its 0.75% charge on the two products, which are trading under the tickers NVDG and TSLG. That fee makes the pair the lowest-charging among the more than 90 such funds, according to data compiled by Todd Sohn, an ETF strategist at Strategas. Most ask for more than 1%, the data show, with an average cost of roughly 1.1%.
These types of ETFs — which use derivatives to offer enhanced or inverse returns on single companies — have been all the rage this year, with a record 45 new funds launching in 2024, compared with 32 last year and 19 the year prior, when they were first allowed to trade by regulators, the Strategas data show.
