GraniteShares has introduced on Deutsche Börse Xetra its suite of ETPs providing directional exposure to baskets of popular US technology stocks.
Inverse and leveraged ETPs are aimed at sophisticated investors who understand the inherent risks of these products.
The ETPs, which are available on Xetra in euros, deliver long (+100%), inverse (-100%), triple leveraged (+300%), or triple inverse (-300%) of the daily performance of an underlying reference index that is formed of a concentrated basket of technology stocks.
The underlying indices are calculated by Solactive and consist of either five or six stocks represented by an acronym: FAANG (Facebook, Amazon, Apple, Netflix, and Google (Alphabet)), GAFAM (Google, Apple, Facebook, Amazon, and Microsoft), and FATANG (Facebook, Amazon, Tesla, Apple, Netflix, and Google).
The indices are equally weighted and rebalanced quarterly.
The seven stocks from which the various baskets are derived account for many trillions of dollars in market capitalization or approximately a quarter of the entire US stock market by value.
Each ETP obtains its desired exposure through a total return swap entered into with French investment bank Natixis.
Inverse and leveraged ETPs tend to decay in value if held for extended periods of time – the products have a recommended holding period of just one day – potentially leading to significant losses, especially in volatile but range-bound markets. However, for traders who understand the mechanics of these products, they can offer an efficient means to hedge existing equity positions or effect new tactical exposures.
Benedict von Lucke, GraniteShares’ Country Head in Germany, said: “The FAANG stocks along with FATANG and GAFAM have been hit over the past year as inflation and interest rate rises have sent the shares lower, but there are signs of recovery along with the Nasdaq100.
“Many investors are starting to ask if it might be time to think about entering the market again which makes our new listings particularly appealing as they offer the chance to leverage or go short which is increasingly popular with sophisticated German investors looking to capitalize on any market volatility.”
The ETPs levy management fees of 0.69% per annum for the unleveraged, long exposures, and 0.99% per annum for the unleveraged short, or leveraged long and short exposures.
GraniteShares FAANG ETP (FNNG GY); previously listed
GraniteShares 1x Short FAANG Daily ETP (FNNS GY); previously listed
GraniteShares 3x Long FAANG Daily ETP (FA3L GY)
GraniteShares 3x Short FAANG Daily ETP (FA3S GY)
GraniteShares GAFAM ETP (GFAM GY)
GraniteShares 1x Short GAFAM Daily ETP (GF1S GY)
GraniteShares 3x Long GAFAM Daily ETP (GF3L GY)
GraniteShares 3x Short GAFAM Daily ETP (GF3S GY)
GraniteShares FATANG ETP (FATN GY)
GraniteShares 1x Short FATANG Daily ETP (1SFT GY)
GraniteShares 3x Long FATANG Daily ETP (3FTG GY)
GraniteShares 3x Short FATANG Daily ETP (FT3S GY)