GraniteShares 2x Long SMCI Daily ETF (SMCL)

Overview

The GraniteShares 2x Long SMCI Daily ETF is a leveraged ETF designed to provide twice the daily performance of Super Micro Computer, Inc. (SMCI). It aims to profit from short-term price movements of SMCI. The ETF's strategy is to seek to achieve its investment objective by investing in financial instruments that provide 2x leveraged exposure to SMCI.

Reputation and Reliability

GraniteShares is a relatively new but growing ETF issuer known for offering a range of niche and leveraged ETFs. They aim to provide cost-effective access to specific investment strategies.

Management Expertise

Information on the specific management team's expertise for this particular ETF is not widely publicized, but GraniteShares generally focuses on providing structured investment products.

Goal

To provide investors with twice the daily return of Super Micro Computer, Inc. (SMCI).

Investment Approach and Strategy

Strategy: This ETF does not track a traditional index. Instead, it uses derivatives and other financial instruments to achieve its 2x daily return objective on the underlying stock (SMCI).

Composition The ETF's holdings are primarily composed of derivative instruments such as futures and swaps designed to replicate the 2x leveraged daily performance of SMCI. It does not directly hold SMCI stock in significant quantities.

Market Share: Due to its highly specific and leveraged nature, the market share of the GraniteShares 2x Long SMCI Daily ETF within the broader ETF market is very small. Its relevance is tied to the trading activity of SMCI.

Total Net Assets (AUM): AUM for this ETF can be highly variable and significantly influenced by the performance and trading volume of SMCI. (Specific numerical AUM data is dynamic and requires real-time lookup, but it is generally considered to be in the lower to moderate range for niche leveraged ETFs.)

Key Competitors

• Direxion Daily SMCI Bull 2X Shares (SMOG)

Competitive Landscape

The competitive landscape for 2x leveraged ETFs on a specific stock is limited. The primary competitor is usually another issuer offering a similar leveraged product on the same underlying stock. GraniteShares' advantage is often in its expense ratio and the specific product offering. A disadvantage is its novelty compared to more established leveraged ETF providers.

Historical Performance: Historical performance data for leveraged ETFs is highly dependent on short-term market movements and is not indicative of long-term returns due to the compounding effect. Performance can be extremely volatile and may significantly underperform the underlying asset over longer periods.

Benchmark Comparison: This ETF does not have a traditional benchmark index in the same way a broad market ETF does. Its performance is directly tied to the daily price movement of SMCI, amplified by 2x. Therefore, a comparison would be against the daily return of SMCI multiplied by two.

Expense Ratio: The expense ratio for the GraniteShares 2x Long SMCI Daily ETF is competitive for its category. (Specific numerical expense ratio should be verified from current prospectus, but it is generally in the range of 0.75% to 1.00% annually).

Average Trading Volume

The average trading volume is a critical factor for leveraged ETFs, and it can fluctuate significantly based on the volatility and investor interest in Super Micro Computer, Inc.

Bid-Ask Spread

The bid-ask spread is an important consideration for traders, as it represents the immediate cost of entering and exiting a position in the ETF, and can be wider for less liquid or more volatile ETFs.

Market Environment Factors

The ETF's performance is heavily influenced by the semiconductor industry, specifically the demand for servers and AI-related hardware, as well as broader market sentiment and investor perception of Super Micro Computer, Inc.'s growth prospects. Factors like supply chain issues, technological advancements, and competitive pressures within the semiconductor sector are also critical.

Growth Trajectory

The growth trajectory of this ETF is directly linked to the performance and investor interest in SMCI. Significant price movements, both positive and negative, in SMCI will drive trading volume and potentially AUM. Any changes to strategy would likely be tied to adjustments in derivative positions to maintain the 2x leverage target.

Competitive Edge

The primary competitive edge of the GraniteShares 2x Long SMCI Daily ETF lies in its focused offering of a 2x leveraged position on a specific, high-growth stock like SMCI. This allows sophisticated investors to express a strong conviction on the short-term direction of SMCI with amplified potential returns. GraniteShares typically aims for competitive expense ratios, which can be an advantage over other leveraged ETF providers.

Volatility

This ETF is inherently very volatile due to its 2x leveraged nature. Its daily price swings are expected to be twice the daily price swings of SMCI, leading to magnified gains and losses.

Market Risk

The specific market risk is tied to the performance of Super Micro Computer, Inc. This includes risks related to the company's business operations, competition, technological obsolescence, supply chain disruptions, and the overall health of the semiconductor and enterprise hardware markets.

Ideal Investor Profile

This ETF is suitable for experienced traders and investors who have a strong short-term conviction on the upward movement of Super Micro Computer, Inc. stock and understand the significant risks associated with leveraged products.

Market Risk

This ETF is best suited for active traders looking for short-term, leveraged exposure rather than long-term investors or passive index followers. Due to its daily reset mechanism, it is not designed for holding periods longer than a single trading day.

The GraniteShares 2x Long SMCI Daily ETF offers amplified daily returns tied to Super Micro Computer, Inc. (SMCI). Its strategy involves using derivatives to achieve 2x the daily performance of SMCI. This product is highly volatile and carries significant risk, making it suitable only for experienced traders with a strong short-term outlook on SMCI. It is not designed for long-term investment due to the compounding effects of daily leverage.

Data Sources:

• GraniteShares ETF Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv - for real-time data)
• SEC Filings

Disclaimers:

This JSON output is for informational purposes only and does not constitute financial advice. Leveraged ETFs are complex and involve a high degree of risk, including the potential loss of principal. Investors should consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Data may be subject to change and should be verified from official sources.