Government Greenlights 4x Leveraged ETFs for Wild Russell Rides
Published Date: 10/3/2025
Notice
Summary
The Cboe BZX Exchange wants to start trading two new GraniteShares ETFs that aim to multiply daily moves of the Russell 1000 index by 4 times—one going up and one going down. This change affects investors looking for big, fast moves in the market and could shake up trading starting soon after approval. It’s a bold move that could mean bigger risks and rewards for anyone jumping in!
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
New 4x Long and Short Russell ETFs
On September 30, 2025, the Cboe BZX Exchange filed to list two GraniteShares ETFs: the GraniteShares 4x Long Russell 1000 Daily ETF and the GraniteShares 4x Short Russell 1000 Daily ETF. Each Fund seeks daily investment results of approximately +4x or -4x the daily performance of the Russell 1000 Index and may use OTC swaps, futures, options, and other financial instruments to achieve that exposure.
Daily-Target Only; Not For Buy-and-Hold
The Funds are daily target funds that seek their 4x or -4x Daily Target only for a single day; a "day" is measured from one NAV calculation to the next. Because of daily rebalancing and compounding, the Funds' performance over periods longer than one day will differ from 4x or -4x the Index's performance over those same periods.
Broker Suitability & Margin Rules Apply
The Exchange will issue an Information Circular informing members of special risks; FINRA's increased sales-practice and customer margin requirements for inverse and leveraged securities (FINRA Regulatory Notices 09-31, 09-53, and 06-65) apply, and members must follow suitability and prospectus delivery rules (prospectus must be delivered prior to or with the confirmation).
Intraday Value and Daily NAV Disclosure
Each Fund's NAV will be calculated daily at 4:00 p.m. ET and made available to all market participants at the same time, and an Intraday Indicative Value (IIV) will be calculated and disseminated every 15 seconds during Regular Trading Hours (9:30 a.m. to 4:00 p.m. ET). The Funds will also post daily portfolio holdings and related data on www.GraniteShares.com.
Extended Trading Hours and Halt Rules
The Exchange will permit trading in the Shares from 8:00 a.m. until 8:00 p.m. ET. The Exchange may halt trading in the Shares under BZX Rule 11.18 or Rule 14.11(f)(4)(C)(ii) for market conditions or other circumstances that make trading inadvisable.
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