GraniteShares 2x Long SMCI Daily ETF (SMCL)

Overview

The GraniteShares 2x Long SMCI Daily ETF (SMCI) is designed to provide twice (2x) the daily investment results of the common stock of Super Micro Computer, Inc. (SMCI). It seeks to magnify short-term gains from SMCI's stock performance, appealing to investors with a high-risk tolerance.

Reputation and Reliability

GraniteShares is a smaller ETF issuer known for its leveraged and inverse products. They are generally considered reliable but their products carry high risk.

Management Expertise

GraniteShares has a team of experienced financial professionals specializing in the creation and management of complex ETF products.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the common stock of Super Micro Computer, Inc. (SMCI).

Investment Approach and Strategy

Strategy: This ETF employs a leveraged strategy, aiming to deliver two times the daily percentage change of SMCI's stock. It uses derivatives and other financial instruments to achieve this leverage.

Composition The ETF primarily holds financial instruments designed to provide leveraged exposure to SMCI, such as swaps and futures contracts. It does not directly hold significant amounts of SMCI stock.

Market Share: SMCI's market share in leveraged single-stock ETFs is relatively small, as it's a niche product.

Total Net Assets (AUM): 25120000

Key Competitors

• None due to the leveraged nature of the fund

Competitive Landscape

The competitive landscape is limited since SMCI is a relatively new, single-stock leveraged ETF. Advantages include the potential for amplified returns if SMCI performs well on a given day. Disadvantages include high risk, potential for rapid value erosion, and the effects of compounding, which can lead to returns that differ significantly from 2x SMCI's cumulative performance over longer periods.

Historical Performance: Historical performance is highly dependent on SMCI's stock performance and daily fluctuations. Due to the leveraged nature of the fund, past performance is not indicative of future results.

Benchmark Comparison: The ETF aims to deliver 2x the daily performance of SMCI. The effectiveness is measured by how closely it tracks this multiple on a daily basis.

Expense Ratio: 0.0115

Average Trading Volume

The ETF's average trading volume is moderate, which can impact the ease of buying and selling shares, especially in large quantities.

Bid-Ask Spread

The bid-ask spread can vary, potentially increasing the cost of trading, particularly during periods of high volatility or low trading volume.

Market Environment Factors

Economic indicators, sector growth prospects (particularly in semiconductors and AI), and overall market sentiment towards technology stocks influence this ETF's performance. SMCI's specific company news and earnings reports are major drivers.

Growth Trajectory

The ETF's growth trajectory depends on the sustained interest in SMCI's stock. Its strategy and holdings are unlikely to change significantly, focusing on maintaining the 2x daily leverage.

Competitive Edge

GraniteShares 2x Long SMCI Daily ETF offers a leveraged investment strategy focused exclusively on Super Micro Computer Inc., providing investors with a unique opportunity to amplify daily gains (and losses). Its narrow focus makes it distinct from broader technology or semiconductor ETFs. The ETF caters to investors with high risk tolerance and a short-term trading horizon. This specialization can be an advantage for those seeking concentrated, leveraged exposure to SMCI.

Volatility

The ETF is highly volatile due to its 2x leverage and the inherent volatility of SMCI's stock.

Market Risk

The ETF is subject to market risk, particularly related to the performance of SMCI. Single-stock risk is substantial, as any negative news or events impacting SMCI can significantly affect the ETF's value. Leveraged ETFs are also subject to compounding risk, potentially causing large discrepancies between predicted and actual returns over time.

Ideal Investor Profile

The ideal investor is a sophisticated trader with a high risk tolerance and a short-term investment horizon. Investors should understand the risks associated with leveraged ETFs and be capable of actively monitoring their positions.

Market Risk

This ETF is most suitable for active traders seeking short-term gains and not for long-term investors or passive index followers. It is a speculative tool.

GraniteShares 2x Long SMCI Daily ETF is a leveraged ETF designed for short-term trading of Super Micro Computer, Inc. Its 2x leverage magnifies both gains and losses, making it a high-risk investment. The ETF's performance depends heavily on SMCI's daily stock movements and is subject to compounding effects. It is most suitable for experienced traders with a strong understanding of leveraged products. Investors should carefully consider their risk tolerance and investment horizon before investing.

Data Sources:

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

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. The information provided is based on available data and is subject to change. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Leveraged ETFs are high-risk investments.