GraniteShares 2x Long VRT Daily ETF (VRTL)

Overview

The GraniteShares 2x Long VRT Daily ETF (VRTL) seeks to provide 2x the daily performance of the common stock of Vertiv Holdings Co, before fees and expenses. It targets investors seeking magnified short-term exposure to Vertiv's stock price movements. The fund uses financial instruments, primarily swap agreements, to achieve its leveraged exposure. It rebalances daily to maintain its 2x leverage factor.

Reputation and Reliability

GraniteShares is a relatively new ETF provider, but has established a reputation for offering leveraged and inverse ETFs. Their reliability depends on the investor's understanding of the complexities and risks associated with leveraged products.

Management Expertise

GraniteShares' management team possesses experience in structuring and managing complex ETF products, including leveraged and inverse funds.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the common stock of Vertiv Holdings Co.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming to deliver twice the daily return of Vertiv Holdings Co. stock through the use of derivatives.

Composition The fund's assets primarily consist of swap agreements and other financial instruments designed to generate the leveraged return. It may also hold cash and short-term investments as collateral.

Market Share: Insufficient data available to accurately determine VRTL's specific market share.

Total Net Assets (AUM): 7972234

Key Competitors

Competitive Landscape

Since VRTL is a leveraged single-stock ETF, it lacks direct competitors offering the same specific exposure to Vertiv. However, broader leveraged ETFs and individual stock trading provide alternative means of gaining exposure to Vertiv. VRTL's advantage lies in its concentrated leverage, while its disadvantage is the amplified risk of daily fluctuations.

Historical Performance: Historical performance is inherently volatile due to the 2x leverage factor. Investors should consult detailed performance charts for specific periods.

Benchmark Comparison: The benchmark is 2x the daily performance of Vertiv Holdings Co. Investors should compare VRTL's performance against this 2x benchmark, accounting for fees and expenses.

Expense Ratio: 1.65

Average Trading Volume

The average trading volume of VRTL fluctuates, but generally provides adequate liquidity for typical trading needs.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions, generally widening during periods of high volatility.

Market Environment Factors

VRTL's performance is heavily influenced by the performance of Vertiv Holdings Co. General market sentiment, sector-specific news impacting Vertiv, and economic conditions all affect its price.

Growth Trajectory

VRTL's growth trajectory depends entirely on the performance and volatility of Vertiv. There is no long-term growth expected, it is for very short term trades only.

Competitive Edge

VRTL's competitive advantage lies in providing a convenient and leveraged way to gain exposure to Vertiv's daily price movements. It offers a higher degree of leverage than traditional margin accounts. This focused exposure can be attractive to experienced traders seeking short-term gains. However, its leveraged nature also amplifies losses, making it unsuitable for risk-averse investors.

Volatility

VRTL exhibits high volatility due to its 2x leverage factor. Daily returns are magnified, increasing both potential gains and losses.

Market Risk

The primary market risk is the potential for significant losses if Vertiv's stock price moves against the ETF's position. Compounding and volatility decay can erode returns over longer periods.

Ideal Investor Profile

The ideal investor is an experienced trader with a high-risk tolerance who seeks short-term, leveraged exposure to Vertiv. It is not suitable for buy-and-hold investors.

Market Risk

VRTL is best suited for active traders with a short-term investment horizon. It is not intended for long-term investors or passive index followers.

The GraniteShares 2x Long VRT Daily ETF offers leveraged exposure to the daily performance of Vertiv Holdings Co. stock, making it a high-risk, high-reward investment vehicle. It is designed for sophisticated traders with a short-term focus and a deep understanding of leveraged products. Due to volatility decay and compounding, it is generally not suitable for long-term investment. Investors should carefully consider their risk tolerance and conduct thorough research before investing.

Data Sources:

• GraniteShares website
• ETF.com
• SEC filings

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Leveraged ETFs are complex financial instruments and may not be suitable for all investors. Past performance is not indicative of future results.