US ETF issuers rush to offer investors new ways to bet on US tech megacap stocks
US ETF issuers rush to offer investors new ways to bet on US tech mega cap stocks
New exchange-traded funds (ETFs) are being introduced by asset management firms in an effort to provide investors with even more opportunities to profit from the surge in U.S. mega-cap technology stocks.
Granite Shares unveiled three new leveraged exchange-traded funds (ETFs) on Monday, with the goal of outperforming Microsoft, Amazon.com, and Advanced Micro Devices by twice their daily return.
Granite Shares unveiled three new leveraged exchange-traded funds (ETFs) on Monday, with the goal of outperforming Microsoft, Amazon.com, and Advanced Micro Devices by twice their daily return.
Since the company introduced its 2x leveraged Nvidia ETF 15 months ago, its assets have increased to $2 billion.
"Our goal was to release a comparable product that was built on AMD," stated GraniteShares CEO Will Rhind.
On Wednesday, the ProShares Nasdaq-100 High Income ETF went live. According to the company, the new fund's strategy would mix long positions in the Nasdaq-100 Index and short positions in call options on the index. According to ProShares, the objective is to employ swap agreements to produce both a high income and total return while capturing exposure to those options.
"Our goal was to release a comparable product that was built on AMD," stated GraniteShares CEO Will Rhind.
On Wednesday, the ProShares Nasdaq-100 High Income ETF went live. According to the company, the new fund's strategy would mix long positions in the Nasdaq-100 Index and short positions in call options on the index. According to ProShares, the objective is to employ swap agreements to produce both a high income and total return while capturing exposure to those options.
Additionally, Roundhill Investments has launched a number of leveraged and covered call exchange-traded funds (ETFs) that are linked to the Nasdaq 100 and the so-called Magnificent Seven, a collection of megacap tech stocks that have recently dominated the U.S. market.
Another provider of leveraged ETFs, Direxion, has introduced two new funds that are expressly associated with the Magnificent Seven, giving investors a means to wager on the group's daily movements. While the Direxion Daily Concentrated Qs Bear 1x ETF aims to capture 100% of the inverse of any move in the group, the Direxion Daily Concentrated Qs Bull 2x ETF offers twice their daily gain.
In order to demonstrate that there is a market for these ETFs outside of the technology sector, Rhind of Granite Shares stated he intends to launch leveraged funds linked to companies like American Airlines and Exxon Mobil. He did not specify when those launches would occur.
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