GraniteShares 2x Long INTC Daily ETF (INTW)

Overview

The GraniteShares 2x Long INTC Daily ETF (INTL) seeks to provide daily investment results, before fees and expenses, corresponding to two times (2x) the daily performance of the common stock of Intel Corporation (INTC). It is a leveraged ETF focused on a single stock. This fund is designed for short-term trading rather than long-term investing.

Reputation and Reliability

GraniteShares is a relatively new ETF provider, but they are known for offering niche and leveraged products. Their reputation is tied to their ability to accurately track their stated objectives and manage the risks associated with leveraged ETFs.

Management Expertise

GraniteShares' management team has experience in financial markets and ETF structuring. The expertise is focused on creating and managing leveraged and inverse products.

Goal

To provide daily investment results, before fees and expenses, corresponding to two times (2x) the daily performance of Intel Corporation (INTC) stock.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming to amplify the daily returns of Intel stock. It uses financial instruments such as swaps and futures to achieve its 2x leverage.

Composition The ETF's assets primarily consist of financial instruments (swaps, futures contracts) designed to deliver the leveraged return. A small portion may be held in cash.

Market Share: INTL has a small market share within the leveraged single-stock ETF category.

Total Net Assets (AUM): 26500000

Key Competitors

• Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL)
• ProShares Ultra Semiconductors (USD)
• GraniteShares 1.25x Long NVDA Daily ETF (NVDL)
• GraniteShares 1.75x Long TSLA Daily ETF (TSLL)

Competitive Landscape

The leveraged ETF market is competitive, with various providers offering similar products on different sectors and individual stocks. INTL's advantage lies in its specific focus on Intel. The disadvantage is the inherent risk associated with leveraged ETFs and the fact that it is a niche product tracking a single stock, making it riskier than broad-based ETFs.

Historical Performance: Historical performance data is highly dependent on Intel's stock performance and market conditions, rendering numerical data without a specific date range meaningless. Leveraged ETFs are generally not suitable for long-term 'buy and hold' investing due to the effects of compounding and daily resets.

Benchmark Comparison: The ETF's performance should be compared to 2x the daily performance of INTC. Tracking error may occur due to fees, expenses, and the ETF's operational mechanics.

Expense Ratio: 0.99

Average Trading Volume

The average trading volume varies but is generally moderate, which could result in wider bid-ask spreads at times.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and trading volume, but should be monitored for trading efficiency.

Market Environment Factors

INTL is affected by factors influencing the semiconductor industry and the overall stock market sentiment towards Intel, including earnings releases, product developments, and macroeconomic conditions.

Growth Trajectory

The growth trajectory depends entirely on Intel's stock performance and investor demand for leveraged exposure to the company. There have not been any strategic changes announced recently.

Competitive Edge

INTL's main advantage is its targeted, leveraged exposure to Intel, appealing to traders who have a strong short-term bullish view on the stock. It offers a way to magnify daily returns for sophisticated investors. INTL provides exposure that isn't broadly available, filling a niche for traders with highly specific market predictions. However, this targeted strategy also makes it far riskier than diversified alternatives. INTL enables investors to access a short-term view on INTC with twice the leverage for short-term benefits.

Volatility

INTL is highly volatile due to its leveraged nature. The daily reset feature can lead to significant losses, especially in choppy or sideways markets.

Market Risk

The ETF is exposed to the market risk of Intel stock, as well as the risks associated with leveraged instruments. Single-stock ETFs such as INTL are very sensitive to sudden market volatility.

Ideal Investor Profile

INTL is suited for sophisticated traders with a high-risk tolerance and a short-term outlook on Intel stock. It's not appropriate for long-term investors or those seeking stable returns.

Market Risk

INTL is designed for active traders seeking to capitalize on short-term movements in Intel's stock price. It is unsuitable for long-term investment strategies.

The GraniteShares 2x Long INTC Daily ETF (INTL) provides leveraged exposure to the daily performance of Intel stock, catering to short-term traders with a bullish outlook. However, its leveraged nature and daily reset feature make it inherently risky, unsuitable for long-term investors. Performance is highly dependent on Intel's daily stock movements, and investors must carefully consider the associated risks before investing. While INTL allows investors to speculate or hedge their investments, it is important to understand that leveraged ETFs such as INTL can quickly erode investor capital due to volatility. INTL is designed as a speculative tool that can be used in short time frames due to the risks associated with compounding.

Data Sources:

• GraniteShares Website
• SEC Filings
• ETF.com
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Investing in leveraged ETFs involves significant risks, and investors should conduct their own due diligence before investing.