An exchange-traded fund provider is helping investors place more bets on Wall Street’s most profitable momentum trades.
GraniteShares launched its first single-stock ETFs in 2022 and currently manages 20 of them. These include the GraniteShares YieldBoost TSLA ETF (TSYY), which launched last month. The fund allows investors to invest in Tesla.
“What that means is more and more people are taking charge of their own finances,” GraniteShares CEO William Rhind said this week on CNBC’s “ETF Edge.” “They want to be able to actively manage that and maybe try to outperform the broader market… That’s where we see leverage, individual stocks, etc. really come into play.”
He called the demand a “global phenomenon” because it’s not just an opportunity for U.S. investors.
“Investors around the world are looking first to the U.S. ETF market because it is the largest source of liquidity,” Rhind added. “They’re looking for a name they know and love – the Teslas of the world (and) NVIDIAof the world. They are only available in the United States, which is why people come here to trade them.
But the company acknowledges that the strategy isn’t right for everyone.
GraniteShares discloses in bold type on its website: “Investing in these ETFs involves significant risks.”
As of Friday’s close, Tesla shares were nearly $100, or about 19%, below their all-time high set on December 18.
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