AMD Product’s Total Wipeout Offers Warning as Firms Seek 3x ETFs

In the month that issuers made a bold push for highly leveraged single-stock ETFs in the US, a tiny product across the Atlantic just showed how dangerous they can be.

GraniteShares was forced to shutter its 3x Short AMD exchange-traded product on Monday after shares of Advanced Micro Devices Inc. surged as much as 38%, wiping out its value. The ETP — listed in London and Italy — aimed to offer three times the inverse return of AMD’s shares and had gathered about $3 million in assets before its closure, according to data compiled by Bloomberg.

A notice on the ...