Sumit Roy
2 min read
Shares of Archer Aviation (ACHR) are a new favorite among retail traders betting on the future of air taxis, and now there's a leveraged ETF to match the hype.
The Tradr 2X Long ACHR Daily ETF (ARCX) launched on Monday, offering 2x daily exposure to Archer’s stock. It’s the latest in a string of single-stock ETFs aimed squarely at retail investors who want to swing big on buzzworthy names.
Archer is developing electric vertical takeoff and landing (eVTOL) aircraft, the kind of flying taxis that used to be confined to sci-fi television. The company is targeting routes of around 20 miles that could take over an hour by car but just minutes by air.
“Why sit in traffic when you can fly above it?” the company’s website reads. “Air taxis are poised to revolutionize the way people move around cities, designed to cut 1+ hour commutes down to mere minutes.”
Archer plans to deliver its first aircraft to the United Arab Emirates later this year. In December, the company announced a defense collaboration with Anduril to co-develop VTOL aircraft for military applications.
Archer’s biggest publicly traded rival is Joby Aviation (JOBY), which commands an $8 billion market cap compared to Archer’s $6 billion. Both companies plan to roll out commercial services within the next few years.
Analysts project Archer could generate $130 million in revenue by 2026 and over $1 billion by 2028, according to consensus estimates. Even then, it's expected to be unprofitable.
Still, the market seems optimistic. Archer’s stock is up 16% year to date and trades slightly above its original SPAC merger price of $10 from 2021.
ARCX checks all the boxes for a successful leveraged ETF: It’s volatile, it’s futuristic and it has a loyal retail following. Given the buzz around Archer, ARCX looks well-positioned to resonate with short-term traders chasing big moves.
Whether it takes off is anyone’s guess. But either way, the launch underscores the growing appetite for leveraged vehicles tied to high-conviction retail names.
