Longtime Market Bleu Tomley is considering two new themes for his Fundstrat Granny Shots Us Large Cap etf.
This week on CNBC’s “ETF Edge,” he revealed that sovereign security could be reduced immediately.
“Now it’s clear that there is a mechanism in place for businesses to truly modify their supply chains within sovereign borders, and that’s a change,” the company’s chief investment officer said. “It’s not going to be a year or two.”
He also sees Gen Z. Lee comparing millennials. Millennials called the market “engine” when FundStrat first began researching the subject seven years ago.
“So we need to focus on Gen Z and Gen Alpha, so we may need to evolve our demographic themes towards a younger cohort,” he said. “It may not be a few years, but I’m like sharing a thought process.”
Lee’s Granny Shots ETF was inspired by the nasty free throw style of NBA legend Rick Barry.
“If you buy the best stock on each theme, you wear a hat on one idea. So we said, “Let’s do it like Rick Barry. Lee will do the right physics basketball throw,” Lee said.
According to Lee, the ETF’s strategy begins with seven themes that FundStrat is projected to define the market over the next decade, from millennials to energy security. To be considered a grandma shot, the stock must fit at least two themes.
“We don’t buy junk stocks. We want to make sure they generate revenue and high ROICs. [return on invested capital]”Lee said, “We balance each quarter.”
So far, the Granny Shots ETF, which launched on November 7th, has attracted investors. In May, FundStrat reported that the ETF had surpassed $1 billion in assets under management milestones. As of last week, Lee said the fund had risen to $1.3 billion.
Since its launch, ETFs have grown by 13% as of Thursday’s end. The fund has beaten the S&P 500 so far this year. The index has risen by almost 15% since January 1st, while it has risen about 7%.
As of July 3, FundStrat reports that its top three holdings are Robinhood, Oracle and AMD.
Independent ETF expert Dave Nadig said he recently observed that ETFs with active management styles gained traction.
“Tom is part of that,” Nadig said in the same interview. “I think having an active management overlay in both inventory selection and theme parts makes a lot of sense for investors. I think it’s easy for investors to understand.”
