GraniteShares Introduces a Suite of Short-Stock, Leveraged ETFs


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A suite of short-equity, leveraged exchange-traded funds (ETFs) recently launched by GraniteShares represents a new category of products allowing investors to take high-conviction short or long positions in the daily price movements of certain stocks. individuals listed on the Nasdaq. Sotck exchange.

The GraniteShares 1.25X Long TSLA Daily ETF (ticker: TSL) and GraniteShares 1X Short TSLA Daily ETF (TSLI) are bundled funds that offer 1.25x (+125%) long exposure and -1x (-100) exposure, respectively. %) a short position, or inverse exposure to Tesla common stock.

The GraniteShares 1.5X Long COIN Daily ETF (CONL) offers 1.5x (150%) long exposure to Coinbase shares, while the GraniteShares 1.75X Long AAPL Daily ETF (AAPB) offers 1.5x long exposure. 75 times (175%) to Apple shares. .

This “leverage factor” aims to provide a multiple of the daily price movement of the underlying share. For example, if Tesla’s common stock rises 10% during a trading day, the GraniteShares 1.25X Long TSLA Daily ETF will rise 12.5%. If Tesla drops 10% in one day, the fund drops 12.5%. These examples exclude fees and other adjustments.

It is important to understand how leverage works. These ETFs seek to replicate the daily performance of an underlying common stock times a leverage factor by rebalancing a fund’s “theoretical market exposure” at the end of the trading day to match the value of the fund multiplied by the leverage factor.

For example, if a 2x long daily ETF is worth $100 at the end of a day, its notional market exposure will be adjusted (or rebalanced) to $200. Please note that factors such as the volatility of the underlying common shares and holding periods longer than one day may increase the impact of compounding on returns and likely produce results that differ from the stated objective of a funds.

ETFs achieve leverage by using derivatives (a negotiable contract whose value is based on the performance of an underlying financial asset, group of assets or benchmark). As such, these products are designed for sophisticated investors who understand leverage and how daily rebalancing leads to compounding returns. They are not intended for investors who do not have the time or interest to actively monitor and manage their portfolios on a daily basis.

These short, leveraged individual stock strategies benefit from the structure of ETFs, which are liquid and transparent securities that trade daily on a public exchange. Investors can trade short-action and leveraged ETFs through online brokerage platforms and apps, stockbrokers, or financial advisors. And there is no need to borrow or hold collateral, so there are no margin calls.

Investors can use this suite of GraniteShares ETFs in a variety of ways, ranging from short-term tactical applications to longer-term strategic implementation. Specific uses include trading during periods of volatility when active investors can use these funds to capture and amplify intraday movements in the stocks targeted by these ETFs. Or they can hedge their risk on a current equity position or try to ride the wave of momentum to amplify returns when stocks are driven by momentum.

The equity market is a rapidly changing market marked by new strategies and products designed to meet the demand of active traders looking for an edge beyond traditional long-only investing. The stocks captured by this new suite of GraniteShares ETFs are some of the most popular on the market, and the ability of these products to take leveraged short or long positions in these names offers investors new ways to potentially capitalize on these dynamic societies.


The products are not issued, endorsed, sold or promoted by Nasdaq. Nasdaq makes no warranty as to the legality or suitability of, and assumes no liability. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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