Security Comparison

NVDA vs NVDU: Which Is the Better Pick in 2026?

A head-to-head comparison of NVIDIA Corporation and Direxion Daily NVDA Bull 2X Shares covering yield, cost, risk, and income potential.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

NVDAInvestors who want direct ownership of the underlying business, with no fund wrapper or management fee.
NVDUInvestors who want higher current income (5.57% paid over the past 12 months vs 0.24% for NVDA).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

NVDA has outpaced NVDU over the trailing twelve months, posting a 18.06% total return against 9.51%. The picture flips over 3 years, though — NVDU has compounded at 83.59% a year, ahead of NVDA at 67.00%. NVDA has been the steadier holding, though — annualized volatility of 46.7% against 90.7% for NVDU. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	Since Sep 2023	Volatility	Sharpe	Sortino	Max drawdown
NVDA	15.08%	18.06%	67.00%	65.23%	46.7%	1.01	1.48	-36.9%
NVDU	9.61%	9.51%	83.59%	81.12%	90.7%	0.63	0.87	-67.3%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Sep 2023” measures every fund from September 13, 2023 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	NVDA	NVDU
Full name	NVIDIA Corporation	Direxion Daily NVDA Bull 2X Shares
Issuer	—	Direxion
Last Close	$214.13 as of October 16, 2026	$127.06 as of October 16, 2026
Distribution rate	0.24%	2.20%
Trailing 12-month yield	0.24%	5.57%
Distribution Safety Score™	95	79
Safety-Adjusted Yield	0.23%	1.74%
Expense ratio	—	0.92%
AUM	—	$509M
Distribution frequency	Quarterly	Quarterly
Underlying index	—	NVIDIA (NVDA)
Objective	Designs and manufactures graphics processing units (GPUs) and system-on-chip units for gaming, professional visualization, data centers, and automotive markets. A leader in AI infrastructure and accelerated computing.	Seeks daily investment results of 200% of the daily performance of the common shares of NVIDIA Corporation.
Asset class	Equity	Equity
Inception date	N/A	09/12/2023
Beta	2.216	3.76
Last dividend	$0.25	$0.698
Ex-dividend date	09/10/2026	09/22/2026

Bottom lineChoose NVDA if you want direct ownership of the underlying business, with no fund wrapper or management fee. Choose NVDU if you want higher current income (5.57% paid over the past 12 months vs 0.24% for NVDA).

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

Daily leverage reset. NVDU targets a multiple of the index's DAILY move, resetting every session. Over weeks and months the compounding of daily resets (volatility decay) can drag returns far below the stated multiple, especially in choppy markets — and losses are magnified the same way gains are.

Learn the mechanics: Why daily-reset leverage decays

Model this comparison:

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Income calculator

See how much monthly income a hypothetical investment would generate in each security at current yields.

Direxion

ETFs134

Total AUM$69.4B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Direxion is known for offering leveraged and inverse ETFs that enable investors to amplify or hedge market exposure across various asset classes and market segments. The firm's fund lineup focuses primarily on income-generating strategies and leveraged products, featuring both daily leveraged long positions and inverse (bearish) funds designed for tactical trading and hedging purposes. The issuer maintains a broad range of tickers covering sectors, commodities, cryptocurrencies, and equity indices, appealing to active traders and investors seeking non-traditional exposure management tools.

See our curated list of related YouTube videos on NVDU.

See all ETFs from Direxion

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Quick verdict

NVDA (NVIDIA Corporation) is a stock, while NVDU (Direxion Daily NVDA Bull 2X Shares) is an ETF — their trading structures differ.

NVDU has paid the higher yield over the past 12 months, 5.57% vs 0.24% for NVDA. We compare trailing 12-month yields here because NVDU's latest distribution annualizes to 2.20% against 5.57% actually paid over the past 12 months, so annualizing a single payment would misstate its income.

Who should choose each?

Choose NVDA

NVIDIA Corporation

Want direct stock ownership — full upside and dividend growth potential, no fund wrapper or expense ratio.
Prefer lower volatility — a beta of 2.2 vs 3.8 for NVDU.

Choose NVDU

Direxion Daily NVDA Bull 2X Shares

Want higher current income — NVDU yields 5.57% paid over the past 12 months vs 0.24% for NVDA.
Want broad equity exposure.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

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Deep dive

Yield & income

On a $10,000 investment, NVDA would generate roughly $6.00 cash per distribution, while NVDU would produce $55.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

NVDA yield0.24%

NVDU yield2.20%

Cash diff on $10K$49.00

Cost & efficiency

NVDU charges a 0.92% expense ratio — roughly $920 over 10 years on $10,000 (simplified, not compounded). NVDA is a stock, not a fund, so it charges no expense ratio.

NVDU ER0.92%

Strategy & risk

NVDA is a stock built around semiconductors exposure, while NVDU tracks NVIDIA (NVDA) with a leverage approach. Beta is 2.216 for NVDA and 3.76 for NVDU, making NVDA the less volatile of the two by this measure.

NVDA beta2.216

NVDU beta3.76

Security details

NVDA (NVIDIA Corporation) is a stock. NVDU is managed by Direxion (launched 09/12/2023) with $509M in assets.

NVDU AUM$509M

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Frequently asked questions

What is the current distribution rate for NVDA and NVDU?

NVDA currently distributes 0.24% and NVDU 2.20%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is NVDA or NVDU better for dividend income?

It depends on your goals. NVDU has paid the higher trailing 12-month yield (5.57% vs 0.24%). We compare trailing 12-month yields here because NVDU's latest distribution annualizes to 2.20% against 5.57% actually paid over the past 12 months, so annualizing a single payment would misstate its income. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between NVDA and NVDU?

NVDA (NVIDIA Corporation) is a stock built around semiconductors exposure, while NVDU (Direxion Daily NVDA Bull 2X Shares) tracks NVIDIA (NVDA) with a leverage approach. They are issued by — and Direxion respectively.

Can I hold both NVDA and NVDU?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is NVDA or NVDU safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — NVDA scores 95, NVDU scores 79, so NVDA's payout currently looks the more resilient of the two. NVDA has also shown lower price volatility (beta 2.22 vs 3.76 for NVDU). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, NVDA or NVDU?

NVDU charges a 0.92% expense ratio. NVDA is a stock, not a fund, so it has no expense ratio — owning it directly costs nothing in ongoing fund fees.

How much income does $10,000 in NVDA vs NVDU generate?

At current rates, $10,000 in NVDA would generate roughly $6.00 cash per distribution ($24.00 annually). The same in NVDU would produce about $55.00 cash per distribution ($220.00 annually).

Which has performed better historically, NVDA or NVDU?

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NVDA vs NVDU — at a glance

Generated October 17, 2026.

Overview

NVDA is a stock in semiconductor design and AI infrastructure. Over longer holding periods, especially in volatile markets, this daily reset creates "volatility decay," where NVDU's multi-month return can lag twice NVDA's return even if NVDA moves in one direction. NVDA carries a beta of 2.216, reflecting its cyclical semiconductor and AI exposure; NVDU's beta of 3.76 reflects its 2x leverage and daily reset mechanics. NVDU holds $509M in assets and trades at $127.06 per share; NVDA trades at $214.13 and was founded in 1999, while NVDU began on 09/12/2023.

Who each is best for

NVDA: Investors seeking direct exposure to a leading AI and data-center chip designer with a long operating history, minimal fees, and a focus on capital appreciation rather than income.

NVDU: Traders and short-term tactical investors who believe NVDA will rise sharply in the near term and are comfortable with intraday rebalancing costs and the possibility of capital erosion during sideways or choppy markets.

Key risks to know

Leveraged decay risk (NVDU specific). Daily rebalancing means NVDU's return over weeks or months can significantly lag 2x the return of NVDA, especially in volatile or range-bound markets.

Single-stock concentration (both). Both securities are entirely dependent on NVDA's business performance, competitive position in AI chips, and customer concentration. A loss of market share, supply chain shock, or regulatory action on AI exports poses outsized risk to both.

High beta and cyclicality (both). NVDA's beta of 2.216 and NVDU's beta of 3.76 mean both swing sharply with tech sector rotations and economic sentiment. Semiconductor cycles and AI hype-and-correction dynamics can drive steep drawdowns.

Leverage risk (NVDU specific). A 50% drop in NVDA would approximate a 100% loss in NVDU, wiping out an investor's capital. Leverage magnifies downside as aggressively as upside.

Bottom line

If you want direct exposure to NVIDIA's long-term secular trends in AI and data centers, NVDA is the straightforward choice. If you're betting on a sharp short-term rally and can tolerate leverage and daily rebalancing drag, NVDU offers amplified upside—but volatility decay and expense ratio will work against you in sideways or extended holding periods. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

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These comparisons follow the Dividend Vision methodology.