GraniteShares has unveiled a US equity ETF targeting the most innovative and disruptive companies within the large-cap segment.

The ETF aims to capture the most disruptive large-cap companies listed in the US.

The GraniteShares Nasdaq Select Disruptors ETF (DRUP US) is being created by repurposing one of GraniteShares’ existing ETFs – the GraniteShares XOUT US Large Cap ETF – which is listed on NYSE Arca.

Effective 15 August 2023, DRUP will track the Nasdaq US Large Cap Select Disruptors Index which selects its constituents from a universe of the 500 largest stocks listed in the US.

Companies in the universe are assigned multi-factor scores based on six metrics that collectively are designed to capture ‘disruption’ across all three stages of the business lifecycle (Infancy, Expansion, and Maturity).

The six metrics include Patent Value as a percentage of Full Market Cap, R&D Expenses as a percentage of Annual Sales, Revenue Growth, Gross Margin Growth, Average Gross Margin, and Gross Margin Sharpe.

The index selects the 50 stocks with the highest disruption scores and weights them by float-adjusted market capitalization. Reconstitution occurs semi-annually, and the index is rebalanced on a quarterly basis.

The index’s sector allocation is dominated by information technology and healthcare companies which account for 70.0% and 24.6% of the total weight, respectively.