GraniteShares 2x Long INTC Daily ETF (INTW)

Overview

The GraniteShares 2x Long INTC Daily ETF (INTL) is a leveraged exchange-traded fund that aims to provide investors with twice the daily return of Intel Corporation (INTC). It is designed for short-term traders and aims to profit from anticipated daily price movements of INTC. The ETF does not aim to achieve this leverage over longer periods due to the effects of compounding.

Reputation and Reliability

GraniteShares is a relatively newer entrant in the ETF market, founded in 2017. While its track record is shorter compared to established ETF providers, it has focused on offering niche and specific investment products, including leveraged and inverse ETFs.

Management Expertise

Information on the specific management team for individual GraniteShares ETFs is generally not as publicly detailed as for larger, more established firms. The focus is on the product structure and strategy rather than individual portfolio managers.

Goal

To deliver twice the daily performance of Intel Corporation (INTC) stock.

Investment Approach and Strategy

Strategy: This ETF employs a derivative-based strategy, typically using futures, options, and swaps to achieve its leveraged exposure to the daily price changes of INTC. It is not designed to track an index but to offer amplified daily returns.

Composition The ETF's holdings are primarily derivatives designed to mimic the 2x daily leveraged exposure to Intel Corporation. It does not hold a diversified portfolio of stocks or bonds.

Market Share: Information on specific market share for niche leveraged ETFs like this is difficult to ascertain precisely and is often negligible in the broader ETF market.

Total Net Assets (AUM): Typically, leveraged ETFs, especially those focused on a single stock, have significantly lower AUM compared to broad-market ETFs. Specific, up-to-date AUM figures would need to be sourced from real-time financial data providers.

Key Competitors

• Direxion Daily Semiconductor Bull 3X Shares (SOXL)
• ProShares Ultra Semiconductors (USD)
• iShares Semiconductor ETF (SOXX)

Competitive Landscape

The landscape for semiconductor-related ETFs is competitive, with several large players offering broad exposure and leveraged products. INTL operates in a highly specialized niche of single-stock leveraged ETFs, which are inherently riskier and have a smaller target audience. Its primary advantage is its direct 2x daily leverage on a specific, well-known tech company. However, its disadvantages include the high risk associated with leveraged products, the impact of compounding on long-term returns, and a lack of diversification.

Historical Performance: Historical performance data for leveraged ETFs like INTL is highly variable and dependent on the daily price movements of the underlying stock (INTC). Due to the nature of daily rebalancing and compounding, long-term performance often deviates significantly from twice the long-term performance of the underlying asset. Specific historical returns would need to be sourced from financial data providers.

Benchmark Comparison: This ETF does not have a traditional benchmark index in the same way a passive ETF does. Its performance is directly tied to the daily 2x leveraged performance of Intel Corporation. Comparisons would be against the daily performance of INTC multiplied by two.

Expense Ratio: Leveraged ETFs typically have higher expense ratios than their unleveraged counterparts due to the costs associated with managing complex derivative strategies. Specific figures would need to be obtained from real-time financial data.

Average Trading Volume

Average trading volume for single-stock leveraged ETFs can be moderate to low, depending on investor interest in the underlying stock and the ETF's specific strategy.

Bid-Ask Spread

The bid-ask spread can vary, but for less liquid leveraged ETFs, it may be wider than for highly traded broad-market ETFs, increasing trading costs.

Market Environment Factors

The performance of INTL is heavily influenced by the financial health, technological advancements, and market sentiment surrounding Intel Corporation and the broader semiconductor industry. Factors like supply chain issues, competition from other chip manufacturers, and global economic conditions affecting demand for electronics are critical.

Growth Trajectory

The growth trajectory of INTL is directly tied to the daily price movements of INTC. As a short-term trading vehicle, its 'growth' is measured by daily performance rather than long-term asset appreciation. Changes to strategy or holdings are unlikely as it's designed for a specific, constant leverage objective.

Competitive Edge

The primary competitive edge of INTL lies in its direct, daily 2x leveraged exposure to Intel Corporation. This offers a straightforward, albeit high-risk, way for traders to amplify their bets on the stock's short-term price movements. It caters to a specific demand from active traders seeking concentrated directional plays on a single, well-known company. The issuer, GraniteShares, focuses on providing these specialized products that might not be available from larger, more conservative ETF providers.

Volatility

This ETF is inherently highly volatile due to its 2x leverage. The daily price swings can be significant, magnifying both gains and losses compared to the underlying stock.

Market Risk

The primary market risk is the daily price movement of Intel Corporation (INTC). Any negative news, competitive challenges, or macroeconomic factors affecting INTC will directly impact the ETF, amplified by the leverage. Additionally, the risk of compounding means that even if INTC has positive long-term returns, the ETF may not achieve twice those returns over longer periods.

Ideal Investor Profile

The ideal investor is an experienced trader with a high-risk tolerance who has a strong conviction about the short-term direction of Intel Corporation's stock and understands the complexities and risks of leveraged ETFs.

Market Risk

This ETF is strictly for active traders looking for short-term speculative opportunities. It is not suitable for long-term investors, passive index followers, or those who are risk-averse due to its leveraged nature and compounding effects.

The GraniteShares 2x Long INTC Daily ETF (INTL) offers amplified daily returns on Intel Corporation (INTC), designed for short-term traders. Its strategy relies on derivatives to achieve 2x daily leverage, making it highly volatile and unsuitable for long-term investment. While it provides concentrated exposure to a single stock, it carries significant risks, including compounding and amplified losses. Investors must possess a high-risk tolerance and a deep understanding of leveraged products.

Data Sources:

• GraniteShares Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv, Yahoo Finance - specific data requires real-time access)

Disclaimers:

This information is for educational purposes only and does not constitute financial advice. Leveraged and inverse ETFs are complex financial instruments and involve a high degree of risk. Investors can lose money rapidly and in excess of their initial investment. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.