GraniteShares 1x Short AMD Daily ETF (AMDS)

ETF GraniteShares 1x Short AMD Daily ETF Overview

Profile:

GraniteShares 1x Short AMD Daily ETF (NYSE Arca: AMDS) is an inverse, actively-managed exchange-traded fund that seeks to deliver the inverse (-1x) daily performance of the AMD Index (Total Return). This means it aims to provide returns that are opposite to the daily performance of AMD stock. The ETF is suitable for short-term investors looking to profit from a decline in AMD's stock price.

Objective:

The primary investment goal of AMDS is to generate returns that are inversely proportional to the daily performance of AMD stock. This allows investors to profit from a decline in AMD's stock price while hedging against potential losses in their long positions.

Issuer:

GraniteShares is a New York-based issuer of exchange-traded products (ETPs) focused on providing innovative and tactical investment solutions. The company has a strong reputation for creating thematic and niche ETPs across various asset classes.

Market Share:

AMDS accounts for a small portion of the inverse and short ETF market, with a market share of approximately 0.01%.

Total Net Assets:

As of November 2023, AMDS has total net assets of approximately $4.5 million.

Moat:

AMDS's main competitive advantage lies in its unique focus on providing short exposure to AMD stock. This niche approach caters to investors seeking targeted short-term strategies. Additionally, GraniteShares' experience in creating thematic ETPs contributes to its expertise in managing this specific ETF.

Financial Performance:

AMDS has a short track record, making it difficult to assess its long-term performance. However, its historical returns have generally mirrored the inverse of AMD's stock price movements.

Benchmark Comparison:

AMDS's performance is compared to the inverse of the AMD Index (Total Return). The ETF has closely tracked its benchmark, demonstrating its effectiveness in achieving its investment objective.

Growth Trajectory:

The future growth of AMDS is dependent on the market's perception of AMD's stock price and the demand for inverse exposure to the company.

Liquidity:

AMDS has an average daily trading volume of approximately 1,000 shares, making it a relatively liquid ETF. The bid-ask spread is tight, indicating low transaction costs.

Market Dynamics:

Factors affecting AMDS's market environment include AMD's stock price performance, overall market sentiment, and investor demand for short-term trading strategies.

Competitors:

Key competitors in the inverse and short ETF market include ProShares Short QQQ (PSQ), ProShares Short S&P 500 (SH), and Direxion Daily Semiconductor Bear 3X Shares (SOXS).

Expense Ratio:

AMDS has an expense ratio of 0.75%, which covers management fees and other operational costs.

Investment Approach and Strategy:

AMDS utilizes a swap agreement to achieve its investment objective. It does not hold AMD stock directly but enters into a contract with a counterparty to deliver the inverse daily performance of the AMD Index.

Key Points:

• Inverse exposure to AMD stock
• Suitable for short-term trading strategies
• Actively managed
• Low expense ratio
• Relatively liquid

Risks:

• High volatility due to its inverse exposure
• Tracking error risk
• Counterparty risk
• Market risk associated with AMD stock

Who Should Consider Investing:

AMDS is suitable for experienced investors with a high-risk tolerance who are looking to profit from a decline in AMD's stock price in the short term. Investors should carefully consider their risk tolerance and investment goals before investing in AMDS.

Fundamental Rating Based on AI:

Based on an AI-based analysis of AMDS's financials, market position, and future prospects, the ETF receives a 6/10 rating. This mid-range rating reflects the ETF's niche focus, decent performance, and moderate expense ratio. However, the high volatility and inherent risks associated with short-term trading strategies warrant careful consideration.

Resources and Disclaimers:

• GraniteShares website: https://graniteshares.com/etps/us/amds/
• ETF.com: https://www.etf.com/AMDS
• Yahoo Finance: https://finance.yahoo.com/quote/AMDS/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.