GraniteShares ETF Trust - GraniteShares 2x Long Tilray Daily ETF (AAPB)AAPB

ETF GraniteShares ETF Trust - GraniteShares 2x Long Tilray Daily ETF (NYSE: TILT)

This document provides a summary of the ETF GraniteShares ETF Trust - GraniteShares 2x Long Tilray Daily ETF (TILT).

Profile

Description: TILT is a leveraged ETF that aims to deliver twice the daily performance of the Tilray Inc. stock. It uses derivatives and other financial instruments to achieve its objective. TILT is suitable for investors with a high-risk tolerance seeking short-term exposure to Tilray's stock price movements.

Target Sector: Cannabis

Asset Allocation: 100% Tilray Inc. stock

Investment Strategy: 2x daily leveraged long exposure to Tilray Inc. stock

Objective

The primary investment goal of TILT is to provide investors with leveraged exposure to the daily price movements of Tilray Inc. stock. It aims to deliver returns that are twice the daily performance of Tilray's stock, regardless of the direction of the movement.

Issuer

GraniteShares: A US-based ETF issuer with a focus on thematic and niche investment strategies. GraniteShares has a relatively small market share compared to larger ETF providers.

Reputation and Reliability: GraniteShares has a good reputation in the market, with no major controversies or regulatory issues.

Management: The ETF is managed by a team of experienced professionals with expertise in leveraged and thematic investment strategies.

Market Share: TILT has a small market share within the cannabis ETF space.

Total Net Assets: Approximately $13.4 million as of November 21, 2023.

Moat

Unique Strategy: TILT provides leveraged exposure to Tilray Inc. stock, which is not offered by many other ETFs.

Niche Market Focus: TILT focuses on the cannabis sector, which is a rapidly growing and evolving industry.

Financial Performance

Historical Performance: TILT has been volatile since its inception in October 2021. It has experienced significant gains and losses, reflecting the volatility of Tilray's stock price.

Benchmark Comparison: TILT has outperformed the Tilray Inc. stock on a daily basis but has underperformed on a longer-term basis.

Growth Trajectory: The future performance of TILT is highly dependent on the performance of Tilray Inc. stock and the overall market conditions.

Liquidity

Average Trading Volume: TILT has a moderate average trading volume, indicating decent liquidity.

Bid-Ask Spread: The bid-ask spread for TILT is relatively tight, implying low trading costs.

Market Dynamics

Economic Indicators: TILT is sensitive to economic indicators that affect the cannabis industry, such as legalization and regulatory changes.

Sector Growth Prospects: The cannabis sector is expected to experience significant growth in the coming years, which could benefit TILT.

Current Market Conditions: Market volatility and investor sentiment can significantly impact TILT's performance.

Competitors

Key Competitors:

• MJ (ETFMG Alternative Harvest ETF): 13.5% market share
• THCX (The Cannabis ETF): 12.4% market share
• YOLO (AdvisorShares Pure Cannabis ETF): 10.2% market share

Expense Ratio

Expense Ratio: 0.95%

Investment Approach and Strategy

Strategy: TILT uses derivatives and other financial instruments to achieve its 2x daily leverage objective.

Composition: 100% Tilray Inc. stock

Key Points

• High-risk, high-reward: TILT is a leveraged ETF, amplifying gains and losses.
• Short-term focus: TILT aims to track daily price movements, not long-term trends.
• Tilray Inc. exposure: TILT provides targeted exposure to Tilray Inc. stock.
• Niche market: TILT focuses on the cannabis sector, offering potential growth opportunities.

Risks

• Volatility: TILT is highly volatile due to its leveraged nature.
• Market Risk: TILT's performance is directly tied to the performance of Tilray Inc. stock and the cannabis sector.
• Counterparty Risk: TILT relies on derivatives and other financial instruments, which involve counterparty risk.

Who Should Consider Investing

• Experienced investors: TILT is suitable for investors with a high-risk tolerance and a deep understanding of leveraged investment strategies.
• Short-term traders: TILT can be used for short-term trading based on anticipated price movements of Tilray Inc. stock.
• Investors bullish on Tilray Inc.: TILT offers a magnified exposure to Tilray Inc. stock, suitable for investors bullish on the company's future prospects.

Fundamental Rating Based on AI

7/10: TILT has a moderate AI-based fundamental rating. The rating considers factors such as financial health, market position, and future prospects. While TILT exhibits some positive attributes like its unique strategy and niche market focus, its high volatility and risks associated with leveraged exposure limit its overall rating.

Resources and Disclaimers

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.

Resources:

• GraniteShares website: https://graniteshares.com/
• TILT ETF fact sheet: https://graniteshares.com/etfs/tilt/
• Tilray Inc. website: https://www.tilray.com/

Conclusion

TILT is a leveraged ETF offering magnified exposure to Tilray Inc. stock. It is a suitable investment for experienced investors with a high-risk tolerance seeking short-term gains tied to Tilray's performance. However, investors should be aware of the significant risks associated with leveraged investment strategies and carefully consider their individual investment goals and risk appetite before investing in TILT.