GraniteShares launches inverse & leveraged basket ETPs on FAANGs et al.

Mar 9th, 2021 | By | Category: Alternatives / Multi-Asset

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GraniteShares has launched 12 ETPs on the London Stock Exchange providing directional exposure to baskets of popular US technology stocks.

William Rhind, Founder and CEO, GraniteShares.

William Rhind, Founder and CEO, GraniteShares.

The ETPs offer long (+100%), inverse (-100%), triple leveraged (+300%), or triple inverse (-300%) daily performance to an underlying reference index that is formed of a basket of 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 approximately $8 trillion in market capitalization – roughly 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.

Will Rhind, Founder and CEO at GraniteShares said: “We are delighted to launch another first to market ETP suite and give investors pure index exposure to FAANG stocks for the first time. This ETP family is an opportunity for investors to express their convictions by investing in the index of their choice on an unleveraged or leveraged basis.”

The ETPs levy daily charges of between 0.002% to 0.006% approximately, equivalent to roughly 1-2% per annum.

GraniteShares FAANG ETP (FANG LN)
GraniteShares 1x Short FAANG Daily ETP (SFNG LN)
GraniteShares 3x Long FAANG Daily ETP (3FNG LN)
GraniteShares 3x Short FAANG Daily ETP (3SFG LN)

GraniteShares GAFAM ETP (GFAM LN)
GraniteShares 1x Short GAFAM Daily ETP (SGFM LN)
GraniteShares 3x Long GAFAM Daily ETP (3GFM LN)
GraniteShares 3x Short GAFAM Daily ETP (3SGF LN)

GraniteShares FATANG ETP (FTNG LN)
GraniteShares 1x Short FATANG Daily ETP (SFTG LN)
GraniteShares 3x Long FATANG Daily ETP (3FTG LN)
GraniteShares 3x Short FATANG Daily ETP (3SFT LN)

GraniteShares also offers a range of leveraged single-stock ETPs targeting select FTSE 100 companies and popular US technology stocks.

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