Exchange-traded fund providers are helping investors bet more on Wall Street’s most profitable momentum trades.
GraniteShares began investing in its first single-stock ETF in 2022 and currently manages 20 ETFs. This includes the GraniteShares YieldBoost TSLA ETF (TSYY), which launched last month. This fund provides investors with exposure to Tesla.
“This means more and more people are in control of their own finances,” GraniteShares CEO William Lind told CNBC’s “ETF Edge” this week. “They want to be able to actively manage it and maybe outperform…That’s where you see leverage and individual stocks really come into play.”
He called demand a “global phenomenon” because it’s not just an opportunity for U.S. investors.
“Investors around the world are turning to the U.S. ETF market first because it is the biggest source of liquidity,” Lind added. “They are focused on the name they know and love: the Teslas of the world. [and] NVIDIA of the world. These are only available here in the US, so people come here to trade them. ”
However, the company acknowledges that this strategy may not be suitable for everyone.
GraniteShares’ website includes a disclosure in bold: “Investing in these ETFs involves significant risks.”
As of Friday’s close, Tesla stock was down nearly $100, or about 19%, from its all-time high on Dec. 18.
