GraniteShares 2x Long AMD Daily ETF (AMDL)

Overview

The GraniteShares 2x Long AMD Daily ETF (AMD) seeks daily investment results, before fees and expenses, of 200% of the daily performance of Advanced Micro Devices (AMD) stock. It is a leveraged ETF designed for short-term trading and not buy-and-hold investing. Its target sector is semiconductors and technology, with asset allocation primarily concentrated in AMD stock through financial instruments like swaps.

Reputation and Reliability

GraniteShares is a relatively newer ETF issuer but has gained a reputation for providing leveraged and inverse products. Its reliability depends on its ability to accurately track the underlying index or asset.

Management Expertise

GraniteShares' management team has experience in structuring and managing leveraged ETFs, requiring expertise in financial derivatives and risk management.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times (200%) the daily performance of Advanced Micro Devices (AMD) stock.

Investment Approach and Strategy

Strategy: The ETF aims to provide leveraged exposure to the daily performance of AMD stock using financial instruments such as swap agreements.

Composition Primarily consists of financial instruments like swap agreements designed to provide leveraged exposure to AMD stock. The actual holdings may also include cash and other short-term instruments.

Market Share: The ETF holds a niche market share within the leveraged single-stock ETF space.

Total Net Assets (AUM): 69000000

Key Competitors

• Direxion Daily Semiconductor Bull 3x Shares (SOXL)
• ProShares Ultra Semiconductors (USD)
• GraniteShares 1.5x Long NVDA Daily ETF (NVDL)

Competitive Landscape

The competitive landscape is characterized by several leveraged and unleveraged semiconductor ETFs. AMD offers a focused, leveraged play on a single stock (AMD), which is more concentrated than broad semiconductor ETFs like SOXL or USD. This targeted approach can lead to higher potential returns but also increased risk compared to its competitors. GraniteShares 1.5x Long NVDA Daily ETF (NVDL) provides a comparable leveraged exposure to another popular semiconductor company (Nvidia), making it a direct alternative for investors with different preferences.

Historical Performance: Historical performance is highly volatile due to the leveraged nature of the ETF. The ETF's daily performance is designed to be 2x of AMD. The ETF's past performance is not indicative of future results, especially considering the ETF's leveraged nature and short-term investment horizon.

Benchmark Comparison: The ETF's benchmark is 2x the daily return of AMD stock. Tracking error can occur due to fees, expenses, and the complexities of leveraged investing. The ETF's effectiveness is best assessed by comparing its daily performance to 2x AMD's daily performance.

Expense Ratio: 0.0115

Average Trading Volume

The average trading volume varies, but generally demonstrates reasonable liquidity for investors looking to trade the ETF.

Bid-Ask Spread

The bid-ask spread is typically competitive, but can widen during periods of high volatility or low trading volume.

Market Environment Factors

The ETF's performance is influenced by factors affecting AMD's stock price, including semiconductor industry trends, technology advancements, market demand, and macroeconomic conditions.

Growth Trajectory

The ETF's growth trajectory is dependent on the growth and performance of AMD stock. There are no changes to strategies and holdings.

Competitive Edge

AMD offers a concentrated leveraged exposure on a single stock. Its unique advantage lies in providing a direct tool for investors seeking short-term gains based on AMD's daily stock movement. This focus differentiates it from broader semiconductor ETFs. It allows for precise, targeted trading strategies centered around AMD's performance.

Volatility

The ETF exhibits high volatility due to its leveraged nature. This is an extremely high-risk investment.

Market Risk

The ETF is subject to market risk associated with AMD stock, including company-specific risks, sector risks, and broader market risks. There is risk of losing money quickly.

Ideal Investor Profile

The ideal investor is an experienced trader with a high-risk tolerance and a short-term investment horizon. They should have a deep understanding of AMD and the semiconductor industry.

Market Risk

The ETF is best suited for active traders looking to capitalize on short-term movements in AMD stock. It is not suitable for long-term investors or passive index followers.

The GraniteShares 2x Long AMD Daily ETF is a leveraged ETF designed for experienced traders seeking short-term exposure to the daily performance of AMD stock. It offers the potential for high returns but also carries significant risk due to its leveraged nature and concentration in a single stock. The ETF is not appropriate for long-term investors and requires careful monitoring. Investors should understand the risks associated with leveraged ETFs and only invest if they have a high-risk tolerance and a deep understanding of the market dynamics influencing AMD's stock price.

• SOXL
• USD
• NVDL
• SMH

Data Sources:

• GraniteShares
• Yahoo Finance
• etf.com

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance, financial situation, and thorough research. Leveraged ETFs are inherently risky and may not be suitable for all investors.