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

Overview

The GraniteShares 2x Long Tilray Daily ETF (TIL) is a leveraged exchange-traded fund designed to provide two times the daily performance of the common stock of Tilray Brands, Inc. (TLRY). It targets investors seeking amplified exposure to the daily price movements of Tilray, a company in the cannabis industry. It's important to note that due to its leveraged nature, it is designed for short-term investment horizons.

Reputation and Reliability

GraniteShares is a smaller ETF issuer. While they offer niche leveraged and inverse products, their reputation is built on providing these specific types of strategies, requiring investors to fully understand the associated risks.

Management Expertise

The management team at GraniteShares specializes in creating and managing leveraged and inverse ETFs, possessing expertise in structured products and risk management specific to these instruments.

Goal

The investment objective is to seek daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the common stock of Tilray Brands, Inc. (TLRY).

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming to magnify the daily returns of Tilray's stock. It does not track an index but rather targets a multiple of a single stock's daily performance.

Composition The ETF primarily holds financial instruments, likely derivatives such as swap agreements, designed to achieve the desired leverage relative to Tilray's stock. It's holdings largely comprise derivatives, not direct holdings of TLRY.

Market Share: Data not publicly available regarding TIL's market share in the leveraged single-stock cannabis sector. It is a relatively unique product.

Total Net Assets (AUM): 14442255.0

Key Competitors

• None

Competitive Landscape

The competitive landscape is limited, as TIL is a unique leveraged ETF tracking a single cannabis stock. Other ETFs may offer exposure to the cannabis sector, but none provide a direct, leveraged play on Tilray specifically. Its advantages are its focused and leveraged exposure; its disadvantages are the high risk and potential for rapid value erosion due to volatility and leverage decay.

Historical Performance: Historical performance data is essential to understand the leveraged nature of the fund, but can be misleading if not analyzed correctly. Given its leveraged nature, returns are highly volatile and subject to daily compounding effects.

Benchmark Comparison: Direct benchmark comparison is not applicable since the ETF aims for 2x daily performance of Tilray, not tracking an index. Performance should be compared to 2x daily performance of TLRY.

Expense Ratio: 1.15

Average Trading Volume

The average trading volume of TIL can vary, but it typically reflects the interest in Tilray, and as a niche leveraged product it often experiences lower volume than broader market ETFs.

Bid-Ask Spread

Given its specialized nature, the bid-ask spread for TIL may be wider than more liquid ETFs, reflecting the increased risk and lower trading volume.

Market Environment Factors

The performance of TIL is heavily influenced by factors impacting Tilray, including cannabis industry regulations, market sentiment towards cannabis stocks, and overall market volatility.

Growth Trajectory

The growth trajectory of TIL is tied to the performance of Tilray and the broader cannabis market, as well as investor appetite for leveraged products. Changes to strategy or holdings will largely depend on GraniteShares' risk management approach.

Competitive Edge

TIL's competitive edge lies in its unique offering: a leveraged play on a single cannabis stock. This provides a specific tool for investors with a strong, short-term bullish view on Tilray. Its leverage allows for amplified potential returns (and losses) compared to unleveraged cannabis ETFs. This appeals to traders seeking to capitalize on short-term price swings in TLRY. However, the risk of leverage decay and volatility are significant drawbacks.

Volatility

TIL is expected to exhibit high volatility due to its leveraged nature and the inherent volatility of cannabis stocks. Investors must be prepared for potentially large and rapid price swings.

Market Risk

The ETF is subject to significant market risk associated with Tilray and the cannabis industry, including regulatory changes, competition, and evolving market sentiment. Leverage amplifies these risks.

Ideal Investor Profile

The ideal investor for TIL is a sophisticated, short-term trader with a high-risk tolerance and a strong understanding of leveraged ETFs and the cannabis industry. This fund is unsuitable for long-term investors or those with a low-risk tolerance.

Market Risk

TIL is suitable for active traders seeking short-term leveraged exposure to Tilray. It is not appropriate for long-term investors or passive index followers.

GraniteShares 2x Long Tilray Daily ETF (TIL) is a leveraged ETF designed to deliver twice the daily performance of Tilray Brands, Inc. (TLRY). It offers a high-risk, high-reward opportunity for sophisticated traders seeking short-term gains. Its leveraged nature makes it unsuitable for long-term investors or those with a low-risk tolerance. Its performance is highly dependent on the daily price movements of Tilray and the ETF is not designed to be held long term.

Data Sources:

• GraniteShares ETF Trust Website
• Various financial data providers (e.g., Bloomberg, Reuters, Morningstar)

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investing in ETFs involves risk, including the potential loss of principal. Leveraged ETFs are inherently risky and are not suitable for all investors. Past performance is not indicative of future results.