At a glance
BABX charges 1.09% a year. It has $74.5M in assets. Over the past year it returned −75.1% with distributions reinvested (S&P 500: +11.5%); over three years it returned −8.3% a year.
The short version
GraniteShares 2x Long BABA Daily ETF (BABX) aims to deliver twice the daily percentage change of Alibaba Group's US-listed shares (NYSE: BABA). It gets that exposure mainly through swap contracts with banks and brokers. Its leverage resets every day, so over weeks or months its results can drift far from twice Alibaba's return. It charges 1.09% a year and swings hard: it rose 123.85% in 2025 and lost 75.1% in the year to October 27, 2026.
Price history
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BABX -75.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BABX price data to Oct 27, 2026 | -61.4% | -75.1% | -8.3% | — | — | -14.9% |
- Over the year to Oct 27, 2026, BABX returned -75.1%.
- Its worst full calendar year was 2023 (-33.9%); its best was 2025 (+123.8%).
- The deepest fall in its price history was 78.8% (Oct 2, 2025 to Jun 26, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -61.4% |
| 2025 | +123.8% |
| 2024 | +1.2% |
| 2023 | -33.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
What's inside
As of Jun 30, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (0% of net assets), with its exposure coming from 3 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jun 30, 2026, investors added a net $38.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.67%, -13.46%, -40.33%.
How it works
BABX does not track an index. It is actively managed with a single target: 2 times (200%) the daily move of Alibaba's American depositary receipt (ADR). An ADR is a US-traded certificate that stands for shares of a foreign company. The fund measures a "day" from one trading day's close to the next. At the end of each trading day, it adjusts its positions so its exposure to Alibaba is about 200% of its net assets.
Most of that exposure comes from total return swaps. In a total return swap, a bank or broker agrees to pay the fund Alibaba's return on a set dollar amount. As of June 30, 2026, the fund held three of them: with Clear Street (about 86% of net assets), TD Cowen (about 76%) and Wells Fargo Securities (about 38%), roughly 200% in total. The fund expects to post 25% to 50% of its assets as collateral. It holds the rest in short-term holdings such as Treasury bills, money market funds or GraniteShares' own Short Term Box ETF (LBOX). If it cannot add swaps, it may use exchange-listed options or buy Alibaba shares directly.
The daily reset is the key mechanical point. Gains and losses compound day by day, so returns over longer periods are very likely to differ from twice Alibaba's return. Choppy trading usually makes them worse. The fund also depends on its swap partners: if one fails to pay, the fund could lose money.
What it really costs
- BABX charges 1.09% a year.
- Of that, 0.99% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.03% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $111 in the first year and $1,359 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BABX | $111 | $353 | $614 | $1,359 |
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 2× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
BABX doubles the daily move of a single Chinese stock and resets every day, which makes it a tool for short-term trading rather than a long-term holding.
BABX launched in December 2022, so it has no record through the 2008, 2020 or 2022 downturns. Its own history has been harsh. It fell 33.9% in 2023, its worst calendar year, then rose 123.85% in 2025. From October 2, 2025 to June 26, 2026 it dropped 78.8%, and it had not recovered as of October 27, 2026. Its volatility, a measure of how widely its price swings, was 81.5% over the year to that date. Anyone forced to sell after a fall like that would lock in heavy losses. The fund has recorded no distributions, so it provides no income. It is also costly at 1.09% a year, about $111 on $10,000 in the first year under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want a magnified one-day bet on Alibaba's ADR and can check their positions every trading day.
- Traders who accept swap-based exposure through Clear Street, TD Cowen and Wells Fargo Securities, along with the risk that a swap partner fails to pay.
- People with a small, separate trading budget who can absorb swings like the 78.8% drop between October 2025 and June 2026.
Look elsewhere if
- Retirees seeking income: BABX has recorded no distributions, so it offers no cash payouts.
- Buy-and-hold investors: the daily reset means returns over months can stray far from twice Alibaba's move, usually for the worse in choppy markets.
- Cost-conscious investors wanting diversification: the 1.09% expense ratio adds up to $1,359 over 10 years on $10,000 in the SEC example, for one stock.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is BABX a good long-term investment?
BABX is not built for long-term holding. It targets twice Alibaba's daily move and resets every day, so over longer periods compounding can push its results far from twice Alibaba's return, usually for the worse in choppy markets. Its record shows the risk. As of October 27, 2026, it was down 75.1% over one year and 14.9% since its December 2022 launch, with volatility of 81.5% over the past year.
Does BABX pay dividends?
No. BABX has recorded no distributions. Its gains and losses come mainly from swap contracts tied to Alibaba's share price, not from owning dividend-paying shares, so it does not produce an income stream. Its collateral and spare cash sit in short-term holdings such as Treasury bills and money market funds. Investors who want regular cash payments would need to look at other types of funds.
What is the BABX expense ratio?
BABX's expense ratio is 1.09% a year, according to its prospectus filed October 28, 2026. The management fee alone is 0.99%. The SEC's standard example assumes $10,000 invested, a 5% annual return and shares sold at the end of each period. On that basis, costs would total about $111 after one year, $353 after three years, $614 after five years and $1,359 after ten years.
What's the difference between BABX and buying BABA stock?
Buying BABA means owning Alibaba's ADR directly and getting its return one for one. BABX aims to double Alibaba's move each day, mainly through swaps, so a one-day fall in Alibaba is roughly doubled for the fund. Because it resets daily, its longer-term results can differ sharply from twice Alibaba's. BABX also charges 1.09% a year and carries the risk that a swap partner fails to pay.
How does BABX get 2x leverage?
BABX gets its leverage mainly through total return swaps. As of June 30, 2026, it held three swaps on Alibaba's ADR, with Clear Street, TD Cowen and Wells Fargo Securities. Together they equaled about 200% of its $74.5 million in net assets. Each swap pays the fund Alibaba's return on a set dollar amount. The fund posts 25% to 50% of its assets as collateral. It can use listed options or buy shares if it cannot add swaps.