GraniteShares 2x Long CRWD Daily ETF (CRWL)

Overview

The GraniteShares 2x Long CRWD Daily ETF (CRDL) seeks to provide 2x the daily performance of CrowdStrike Holdings, Inc. (CRWD). It targets investors seeking amplified short-term gains from CRWD stock. It rebalances daily and is not suitable for long-term holding due to compounding effects.

Reputation and Reliability

GraniteShares is a smaller ETF provider known for its leveraged and inverse ETFs. They generally lack the track record of larger, more established firms.

Management Expertise

Information on specific management team expertise is limited, but GraniteShares specializes in complex, geared strategies.

Goal

To provide daily investment results, before fees and expenses, corresponding to two times (2x) the daily performance of the common stock of CrowdStrike Holdings, Inc.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming to deliver twice the daily return of CRWD stock. It uses financial instruments like swaps to achieve this leverage.

Composition The ETF's primary holding is derivatives designed to mimic 2x the daily performance of CRWD. It also holds cash for collateral purposes.

Market Share: CRDL holds a small market share compared to broader technology or cybersecurity ETFs.

Total Net Assets (AUM): 27380828

Key Competitors

• ProShares Ultra Nasdaq Cybersecurity ETF (HACK)
• Direxion Daily Technology Bull 3X Shares (TECL)

Competitive Landscape

The ETF industry is highly competitive, with many firms offering technology-focused and leveraged products. CRDL's advantage lies in its specific focus on CrowdStrike. Its disadvantage is high risk and limited appeal compared to broader, less volatile funds.

Historical Performance: Historical performance is highly volatile and directly tied to CRWD's daily fluctuations. Due to the 2x leverage and daily reset, long-term performance can deviate significantly from 2x CRWD's overall return.

Benchmark Comparison: The ETF's benchmark is 2x the daily performance of CRWD. Tracking error can occur due to fees, expenses, and the complexities of leveraged investing.

Expense Ratio: 1.36

Average Trading Volume

The average trading volume is moderate, which could impact trading costs for larger orders.

Bid-Ask Spread

The bid-ask spread can be relatively wide, especially during periods of high volatility.

Market Environment Factors

CRDL's performance is affected by CrowdStrike's business performance, cybersecurity sector trends, investor sentiment, and broader market conditions.

Growth Trajectory

Growth is tied to CRWD's stock performance and investor appetite for leveraged exposure to a single stock; changes in CRWD's business or sentiment can quickly shift its trajectory.

Competitive Edge

CRDL's primary advantage is its specific focus on providing leveraged exposure to CrowdStrike, catering to investors bullish on CRWD. This targeted approach differentiates it from broad technology or cybersecurity ETFs. However, this focus also represents a major risk, as its performance is entirely dependent on the performance of a single stock. The leverage amplifies both gains and losses, making it a high-risk, high-reward instrument.

Volatility

CRDL is highly volatile due to its 2x leverage and the inherent volatility of CrowdStrike stock. It is significantly riskier than a non-leveraged investment in CRWD.

Market Risk

Market risk is high due to the concentrated exposure to a single stock. CRWD's business performance, industry competition, and overall market sentiment can all significantly impact CRDL's value.

Ideal Investor Profile

The ideal investor is a sophisticated trader with a strong conviction in CrowdStrike's short-term performance and a high risk tolerance. They understand the complexities of leveraged ETFs and actively monitor their positions.

Market Risk

CRDL is best suited for active traders seeking short-term gains, not for long-term investors or passive index followers.

The GraniteShares 2x Long CRWD Daily ETF (CRDL) offers leveraged exposure to the daily performance of CrowdStrike. It is designed for short-term trading and carries significant risks due to its 2x leverage and single-stock concentration. Investors should carefully consider their risk tolerance and investment objectives before investing in this ETF. It is not a suitable investment for long-term holding or passive investors.

Data Sources:

• GraniteShares
• SEC Filings
• MarketWatch
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions. Leveraged ETFs are high-risk investments.