GraniteShares ETF Trust - GraniteShares 2x Long Tilray Daily ETF (AAPB)

Overview

The GraniteShares 2x Long Tilray Daily ETF is an actively managed exchange-traded fund seeking to provide investors with a 2x leveraged daily return of the performance of Tilray, Inc. (TLRY). It is designed for short-term traders and speculative investors who have a strong conviction on the near-term price movement of TLRY, a cannabis company. The ETF utilizes derivatives and other financial instruments to achieve its leveraged objective. The investment strategy is solely focused on the daily performance of Tilray, Inc.

Reputation and Reliability

GraniteShares is known for offering a range of niche and leveraged ETFs, often focusing on single stocks or specific sectors. While they offer specialized products, their reputation is more aligned with providing targeted investment vehicles rather than broad-based, long-term investment solutions. Investors should assess the issuer's specific product offerings and historical performance of similar leveraged products.

Management Expertise

The ETF is managed by GraniteShares, which employs a team of portfolio managers. Specific details on the individual expertise of the management team for this particular ETF are not extensively published, but the firm's focus on creating specialized ETFs suggests an understanding of the complexities involved in leveraged and single-stock strategies.

Goal

To provide investors with 2x the daily return of Tilray, Inc. (TLRY). This means that if TLRY increases by 1% on a given day, the ETF aims to increase by 2%. Conversely, if TLRY decreases by 1%, the ETF aims to decrease by 2%.

Investment Approach and Strategy

Strategy: The ETF aims to achieve its investment objective by investing in financial instruments, including derivative contracts, that provide 2x leveraged exposure to the daily performance of Tilray, Inc. (TLRY). It does not track a specific index but rather seeks to replicate the leveraged daily returns of a single stock.

Composition The ETF primarily holds derivative instruments such as futures contracts, options, and swaps. It may also hold cash and cash equivalents to manage its daily objectives. The underlying asset that drives its composition and performance is Tilray, Inc. (TLRY) stock.

Market Share: As a highly specialized, leveraged ETF focused on a single stock, its market share within the broader ETF landscape is very small. It caters to a niche audience of short-term traders and speculators.

Total Net Assets (AUM): 10000000

Key Competitors

• GraniteShares ETF Trust - GraniteShares 2x Long Canopy Growth Daily ETF (GGROW)
• Direxion Daily Cannabis Stocks Bull 2X Shares (YOLO)

Competitive Landscape

The competitive landscape for leveraged cannabis ETFs is limited but present. Competitors include other leveraged ETFs from GraniteShares focusing on different cannabis stocks or broader cannabis indexes, and other providers like Direxion. GraniteShares' advantage lies in its specific single-stock focus, offering precise exposure to TLRY. However, its disadvantage is its extreme specialization, making it less diversified and more volatile than broader cannabis ETFs.

Historical Performance: Historical performance data for this ETF is highly volatile and should be viewed on a daily basis. Due to its leveraged nature and single-stock focus, long-term performance is not typically a relevant metric for its intended use. Performance can vary significantly day-to-day based on TLRY's price movements and the ETF's rebalancing strategy. For specific daily performance figures, refer to the ETF's official fact sheet or financial data providers.

Benchmark Comparison: This ETF does not track a specific benchmark index. Its performance is directly linked to the daily price movement of Tilray, Inc. (TLRY), amplified by a 2x leverage factor. Therefore, a benchmark comparison is not applicable in the traditional sense; its performance is measured against 2x the daily change of TLRY.

Expense Ratio: 0.8

Average Trading Volume

The average trading volume for this ETF can vary significantly, but it is generally considered to have lower liquidity compared to broad-market ETFs, as it caters to a specialized trading audience.

Bid-Ask Spread

The bid-ask spread for this ETF can be wider than for highly liquid ETFs, reflecting its niche market and potentially lower trading volumes, which can increase trading costs for investors.

Market Environment Factors

The ETF's performance is heavily influenced by factors affecting the cannabis industry, including regulatory changes in various jurisdictions (e.g., US federal legalization status, international market developments), shifts in consumer demand, competition within the sector, and overall macroeconomic conditions that impact consumer discretionary spending and stock market sentiment. The performance of Tilray, Inc. (TLRY) specifically, including its financial results, new product launches, and strategic partnerships, is the paramount driver.

Growth Trajectory

The growth trajectory of this ETF is directly tied to the performance and investor interest in Tilray, Inc. (TLRY) and the broader cannabis sector. As a leveraged product, its AUM can fluctuate rapidly with market sentiment and trading activity. Changes in strategy are unlikely, as its core objective is to maintain 2x daily leveraged exposure to TLRY.

Competitive Edge

The primary competitive edge of the GraniteShares 2x Long Tilray Daily ETF lies in its specialized and direct 2x leveraged daily exposure to a single cannabis stock, Tilray, Inc. (TLRY). This offers traders a precise tool to speculate on short-term price movements of TLRY with amplified potential gains. It caters to a specific subset of investors looking for highly targeted, short-term trading opportunities within the volatile cannabis sector.

Volatility

This ETF is inherently highly volatile due to its 2x leveraged nature and its focus on a single, often speculative, stock. Daily price swings can be substantial, leading to significant potential losses. The compounding effect of daily leverage means that long-term returns can diverge significantly from the stated leverage multiple of the underlying asset.

Market Risk

The ETF is exposed to significant market risk associated with the cannabis industry, which is subject to regulatory uncertainty, intense competition, and fluctuating consumer sentiment. Furthermore, it faces specific risks related to Tilray, Inc. (TLRY), including its financial performance, operational challenges, and competitive positioning. The leveraged nature amplifies all these risks.

Ideal Investor Profile

The ideal investor for this ETF is a sophisticated, experienced trader who understands the risks of leveraged products and has a strong short-term directional view on Tilray, Inc. (TLRY). They should be comfortable with high volatility and the potential for significant and rapid losses.

Market Risk

This ETF is best suited for active traders seeking short-term tactical plays, not for long-term investors or passive index followers. It is designed for speculation on daily price movements and is not appropriate for wealth accumulation or preservation.

The GraniteShares 2x Long Tilray Daily ETF offers amplified daily returns linked to Tilray, Inc. (TLRY), making it a highly speculative instrument. Its primary focus is short-term trading, with a significant risk profile due to leverage and single-stock concentration. Investors should be acutely aware of its volatility and suitability only for experienced, active traders. The ETF's performance is directly tied to TLRY's daily price action, amplified by 2x leverage.

Data Sources:

• GraniteShares Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv)

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Leveraged ETFs are complex and involve a high degree of risk, including the potential to lose the entire principal amount invested. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.