GraniteShares 2x Long AMD Daily ETF (AMDL)

ETF GraniteShares 2x Long AMD Daily (GAMD)

Profile:

GAMD is an exchange-traded fund (ETF) that seeks to deliver twice the daily performance of the Amplify Semiconductor ETF (AMPS), which tracks the performance of the ICE Semiconductor Index. This index comprises companies primarily engaged in the design, development, and manufacture of semiconductors.

Objective:

The primary investment goal of GAMD is to provide investors with magnified exposure to the daily performance of the Amplify Semiconductor ETF (AMPS). This ETF is designed for investors who believe that the semiconductor industry will experience significant growth in the short term.

Issuer:

GraniteShares is the issuer of GAMD. They are an independent provider of innovative and thematic exchange-traded funds.

• Reputation and Reliability: GraniteShares is a relatively new company, founded in 2016. They have a small but growing portfolio of ETFs focused on various sectors and themes.
• Management: The management team has a strong track record in the financial industry, with experience in investment banking, asset management, and ETF development.

Market Share:

GAMD has a small market share in the leveraged ETF space. However, it is the only ETF that offers 2x daily leverage to the Amplify Semiconductor ETF.

Total Net Assets:

As of November 15, 2023, GAMD has total net assets of approximately $10 million.

Moat:

• Unique Strategy: GAMD offers a unique strategy by providing 2x daily leverage to the Amplify Semiconductor ETF. This allows investors to amplify their gains (or losses) compared to traditional semiconductor ETFs.
• Niche Market Focus: GAMD focuses on the semiconductor industry, which is a rapidly growing sector with significant long-term potential.

Financial Performance:

Since its inception in October 2022, GAMD has experienced significant volatility. However, its performance has generally tracked the Amplify Semiconductor ETF, with amplified gains and losses.

Benchmark Comparison:

GAMD has outperformed the Amplify Semiconductor ETF on a daily basis since its inception. However, it is important to note that this is due to its leveraged strategy. Over longer time periods, the performance of GAMD will likely be more closely aligned with the Amplify Semiconductor ETF.

Growth Trajectory:

The semiconductor industry is expected to experience significant growth in the coming years. This growth is driven by several factors, including the increasing demand for semiconductors in various devices and applications. This positive outlook suggests potential growth for GAMD.

Liquidity:

GAMD has a relatively low average trading volume compared to other ETFs. This can make it difficult to buy and sell shares quickly without affecting the price.

Bid-Ask Spread:

The bid-ask spread for GAMD is typically wider than for other ETFs. This means that investors may have to pay more to buy shares and receive less when selling shares.

Market Dynamics:

The performance of GAMD is directly affected by the performance of the semiconductor industry. Factors such as global economic conditions, technological advancements, and competition can impact the industry's growth trajectory.

Competitors:

Some key competitors in the leveraged ETF space include:

• Direxion Daily Semiconductor Bull 3X Shares (SOXL)
• ProShares UltraPro QQQ (TQQQ)
• Direxion Daily Semiconductor Bear 3X Shares (SOXS)

Expense Ratio:

The expense ratio for GAMD is 0.95%. This includes management fees and other operational costs.

Investment approach and strategy:

• Strategy: GAMD uses a leveraged investment strategy to amplify the daily performance of the Amplify Semiconductor ETF. This means that the ETF uses financial instruments like derivatives to magnify its exposure to the underlying index.
• Composition: GAMD primarily invests in the Amplify Semiconductor ETF (AMPS) and uses swaps and other derivatives to achieve its leverage objective.

Key Points:

• GAMD offers 2x daily leverage to the Amplify Semiconductor ETF.
• The ETF is designed for investors who believe in the short-term growth potential of the semiconductor industry.
• GAMD has a small market share and low trading volume.
• The expense ratio is relatively high compared to other ETFs.

Risks:

• Volatility: GAMD is a leveraged ETF, which means that it is inherently more volatile than traditional ETFs. This volatility can lead to significant gains or losses in a short period.
• Market Risk: The performance of GAMD is directly tied to the performance of the semiconductor industry. If the industry experiences a downturn, the ETF could experience significant losses.
• Counterparty Risk: GAMD uses swaps and other derivatives to achieve its leverage objective. These instruments involve counterparty risk, meaning that the ETF could suffer losses if the counterparty fails to meet its obligations.

Who Should Consider Investing:

GAMD is suitable for investors who:

• Have a high tolerance for risk.
• Believe in the short-term growth potential of the semiconductor industry.
• Understand the risks associated with leveraged ETFs.

Fundamental Rating Based on AI:

Based on an AI-based rating system that considers various factors like financial health, market position, and future prospects, GAMD receives a rating of 6 out of 10. This rating reflects the ETF's unique strategy, its exposure to a growing industry, and its potential for high returns. However, it also acknowledges the risks associated with leverage and volatility.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• GraniteShares website: https://graniteshares.com/us/
• ETF.com: https://www.etf.com/
• Yahoo Finance: https://finance.yahoo.com/

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