GraniteShares 2x Long INTC Daily ETF (INTW)

Overview

The GraniteShares 2x Long INTC Daily ETF (ticker: FSCH) is designed to provide investors with 2x leveraged daily exposure to the performance of Intel Corporation (INTC). It aims to amplify both the gains and losses of INTC on a daily basis, making it a highly speculative and short-term investment vehicle.

Reputation and Reliability

GraniteShares is a relatively newer player in the ETF market, known for offering thematic and levered/inverse ETFs. While they offer a range of products, their reputation is still developing compared to more established ETF providers.

Management Expertise

Information on the specific management team for FSCH is not prominently detailed. However, GraniteShares as a firm aims to provide innovative ETF solutions, suggesting a focus on product development and execution.

Goal

To deliver twice the daily return of Intel Corporation's stock price.

Investment Approach and Strategy

Strategy: This ETF does not track an index. Instead, it uses financial derivatives, such as swap agreements and futures contracts, to achieve its 2x leveraged daily investment objective on Intel stock.

Composition The ETF primarily holds derivative instruments and cash or cash equivalents to achieve its leveraged exposure. It does not directly hold Intel stock in significant quantities.

Market Share: As a niche, leveraged ETF focused on a single stock, FSCH likely has a very small market share within the broader ETF universe. Precise market share data for such specific products is not readily available.

Total Net Assets (AUM): The Total Net Assets (AUM) for FSCH can fluctuate significantly due to its leveraged nature and trading activity. As of recent data, it is typically in the range of tens of millions of USD, but this is subject to rapid change.

Key Competitors

• ProShares Ultra Semiconductors ETF (SOXX)

Competitive Landscape

The competitive landscape for single-stock leveraged ETFs is limited due to their high risk. FSCH competes with other leveraged ETFs, although most focus on broader indices or sectors rather than individual stocks. Its advantage lies in its specific focus on Intel, but its disadvantages include extremely high risk and the potential for significant value decay over time due to daily rebalancing.

Historical Performance: Historical performance is highly volatile and directly tied to the daily price movements of Intel stock. Due to its 2x leverage and daily reset, its long-term performance can deviate significantly from 2x the performance of Intel over the same period.

Benchmark Comparison: This ETF's performance is benchmarked against the daily performance of Intel Corporation, amplified by a factor of 2. However, it's crucial to note that long-term performance will not be exactly double that of Intel due to the effects of daily compounding and rebalancing.

Expense Ratio: 1.05

Average Trading Volume

The average trading volume for FSCH can vary, but it is generally considered liquid enough for active traders due to its leveraged nature, though it may not be as liquid as broader market ETFs.

Bid-Ask Spread

The bid-ask spread for FSCH can be wider than for more established ETFs, reflecting its niche and leveraged structure, which can increase trading costs for investors.

Market Environment Factors

Factors affecting FSCH include the overall semiconductor industry outlook, Intel's specific product development cycles, competitive pressures from other chip manufacturers, global economic conditions impacting technology spending, and investor sentiment towards growth stocks.

Growth Trajectory

The 'growth' of FSCH is directly dictated by the daily price action of INTC. Any changes to strategy or holdings would be internal to GraniteShares' management of the derivative positions to maintain the 2x leverage objective.

Competitive Edge

FSCH's primary competitive edge is its specific, high-octane exposure to Intel Corporation with 2x daily leverage. This offers traders a direct way to amplify short-term bets on the stock without complex derivative strategies. However, this advantage is severely offset by the inherent risks of leveraged and daily rebalanced products.

Volatility

FSCH is characterized by extremely high volatility due to its 2x leveraged structure. Daily price swings can be substantial, both to the upside and downside.

Market Risk

The primary market risk is the price movement of Intel Corporation (INTC). Any negative news or market sentiment affecting INTC will be amplified by 2x. There is also the risk of significant capital loss due to the daily rebalancing mechanism, especially in volatile or trending markets, leading to performance decay over time.

Ideal Investor Profile

The ideal investor for FSCH is a highly sophisticated trader with a strong understanding of leverage, derivatives, and short-term market movements. They should have a high-risk tolerance and be prepared for potential rapid and substantial losses.

Market Risk

FSCH is best suited for active traders seeking to capitalize on very short-term price movements (intraday or a few days at most) of Intel stock. It is absolutely not suitable for long-term investors or passive index followers due to its structure and associated risks.

The GraniteShares 2x Long INTC Daily ETF (FSCH) offers amplified 2x daily exposure to Intel Corporation's stock performance. It is a highly speculative instrument designed for short-term trading and requires a sophisticated understanding of leverage and associated risks. Due to its daily rebalancing, long-term returns can significantly diverge from double the underlying asset's performance. Investors should be prepared for extreme volatility and potential for substantial capital loss.

Data Sources:

• GraniteShares Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv, Yahoo Finance)
• ETF Analysis Platforms

Disclaimers:

This information is for educational purposes only and should not be considered investment advice. Leveraged ETFs are complex and carry substantial risk, including the potential to lose more than the amount invested. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.