GraniteShares Plans 20 Geared Single-Stock ETFs

In what is looking like a developing trend, a third ETF issuer has filed for 20 ETFs that will offer leveraged or inverse exposure to a single stock.

GraniteShares’ most recent filing includes funds offering 2x long exposure to 19 different stocks, all of which are widely held, as well as one fund offering 1x inverse exposure to Tesla. The planned funds are as follows:

• GraniteShares 2x Long Tesla Daily ETF
• GraniteShares 1x Short Tesla Daily ETF
• GraniteShares 2x Long NVIDIA Daily ETF
• GraniteShares 2x Long NIO Daily ETF
• GraniteShares 2x Long Coinbase Daily ETF
• GraniteShares 2x Long Moderna Daily ETF
• GraniteShares 2x Long Alibaba Daily ETF
• GraniteShares 2x Long Meta Platforms Daily ETF
• GraniteShares 2x Long Alphabet Daily ETF
• GraniteShares 2x Long Amazon Daily ETF
• GraniteShares 2x Long Apple Daily ETF
• GraniteShares 2x Long Microsoft Daily ETF
• GraniteShares 2x Long AMD Daily ETF
• GraniteShares 2x Long Palantir Daily ETF
• GraniteShares 2x Long Twitter Daily ETF
• GraniteShares 2x Long Uber Daily ETF
• GraniteShares 2x Long Tilray Daily ETF
• GraniteShares 2x Long Peloton Daily ETF
• GraniteShares 2x Long Disney Daily ETF
• GraniteShares 2x Long Ford Daily ETF

AXS Investments was the first to propose such funds, filing for a total of 18 2x inverse and leveraged ETFs tied to shares of Tesla, NVIDIA, ConocoPhillips, Boeing, PayPal, Wells Fargo, Pfizer, Salesforce and Nike. Direxion quickly followed about a week later with filings for funds offering -1x, 2x and -2x exposure to eight different stocks: Meta, Netflix, Apple, Microsoft, Amazon, Google, NVIDIA and Tesla.

(Use our stock finder tool to find an ETF’s allocation to a certain stock.)

Given that the SEC is in the midst of a review of leveraged and inverse exchange-traded products, it seems likely that these proposed ETFs will be subject to additional scrutiny by the regulatory agency, including requests for greater disclosure in the fund materials and supporting data that they will not contribute to market volatility, despite their concentrated nature. 

Contact Heather Bell at [email protected]