An exchange-traded fund provider is helping investors bet more on Wall Street’s most profitable momentum trades.
GraniteShares, which launched its first issuance of single-share ETFs in 2022, now manages 20 of them. It includes the GraniteShares YieldBoost TSLA ETF (TSYY), which launched last month. The fund gives investors exposure to Tesla.
“This is about more and more people taking charge of their own finances,” GraniteShares CEO William Rhind told CNBC’s “ETF Edge” this week. “They want to be able to actively manage that and maybe try to outperform… That’s where we see things like leverage, individual stocks really playing out.”
He calls the demand “a global phenomenon” because it is not just an opportunity for American investors.
“We have investors around the world who are looking at the US ETF market first because that is the largest source of liquidity,” Rhind added. “They look at the names they know and love: the Teslas of the world [and] the Nvidias of the world. They are only available here in the US and that is why people come here to trade them.”
But the company acknowledges that the strategy isn’t for everyone.
GraniteShares has posted a bold statement on its website: “An investment in these ETFs involves significant risks.”
At Friday’s close, Tesla stock is nearly $100, or about 19%, below its all-time high – reached on December 18.