Tradr launches 2x short ETFs on AAOI and ORCL as AI stocks swing

Tradr ETFs on Wednesday launched two first-to-market inverse ETFs that deliver minus 200 percent daily returns on Applied Optoelectronics and Oracle.

"Both Applied Optoelectronics and Oracle have become important AI infrastructure narratives, but they're driven by very different catalysts and can experience significant price swings," Matt Markiewicz, head of product and capital markets at Tradr ETFs, said.

The Cboe-listed Tradr 2X Short AAOI Daily ETF, ticker AAOZ, and Tradr 2X Short ORCL Daily ETF, ticker ORCZ, each seek minus 200 percent daily performance of their underlying stocks. The launch follows the Tradr 2X Long AAOI Daily ETF, which began trading March 24 and has accumulated more than $275 million in assets under management.

The new funds give active traders a way to hedge or bet against two of the most volatile AI-linked stocks without using margin or options. Tradr now offers 74 leveraged ETFs, reflecting growing demand for single-stock trading vehicles.

Applied Optoelectronics, a fiber-optic component supplier to data-center operators, and Oracle, the database company expanding its cloud infrastructure business, represent distinct AI stories with different risk profiles, Markiewicz said. The inverse ETFs are designed for sophisticated investors who actively monitor positions, as daily resetting leverage means returns over longer periods can diverge from minus two times the stock's performance.

The funds carry the risk of total loss if the underlying stock moves more than 50 percent in a direction adverse to the fund on a single trading day, according to the prospectus. Tradr ETFs are distributed by ALPS Distributors Inc.

The launch shows the expansion of the single-stock leveraged ETF category since regulators approved the structure in 2022. Competitors including GraniteShares and Direxion have introduced similar products tracking dozens of U.S. companies.

For Applied Optoelectronics, the availability of both a 2x long fund with $275 million in AUM and a new 2x short vehicle creates a complete two-way trading ecosystem. Oracle's ORCZ gives investors a bearish option on a stock that has gained as its cloud business accelerates.

The dual launches signal that ETF issuers see sustained demand for both bullish and bearish single-stock vehicles as AI-related equities continue to experience sharp price swings. Investors will watch trading volumes in AAOZ and ORCZ over the coming weeks to gauge institutional appetite for inverse AI exposure.

This article is for informational purposes only and does not constitute investment advice.