GraniteShares 2x Long CRWD Daily ETF (CRWL)

Overview

The GraniteShares 2x Long CRWD Daily ETF (CRDL) aims to provide 2x the daily performance of the common stock of CrowdStrike Holdings, Inc. It targets investors seeking leveraged exposure to the cybersecurity sector. The fund uses a combination of financial instruments to achieve its objective.

Reputation and Reliability

GraniteShares is known for offering leveraged and inverse ETFs. They are generally considered a reliable issuer, but investors should understand the risks associated with leveraged products.

Management Expertise

GraniteShares has a team experienced in managing leveraged and inverse ETFs, requiring expertise in derivatives and active portfolio management.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times (2x) the daily percentage change of the common stock of CrowdStrike Holdings, Inc.

Investment Approach and Strategy

Strategy: The fund employs a leveraged strategy, using financial instruments such as swap agreements to amplify the daily returns of CrowdStrike Holdings, Inc. (CRWD).

Composition The ETF primarily invests in financial instruments designed to provide leveraged exposure to CrowdStrike (CRWD), including swap agreements and potentially other derivatives.

Market Share: CRDL's market share is relatively small as it is a niche, leveraged product focused on a single stock.

Total Net Assets (AUM): 23724912

Key Competitors

• Direxion Daily Technology Bull 3X Shares (TECL)
• ProShares Ultra QQQ (QLD)
• ProShares UltraPro QQQ (TQQQ)
• MicroSectors FANG+ Index 3X Leveraged ETN (FNGU)

Competitive Landscape

The competitive landscape includes other leveraged ETFs that target technology or specific companies. CRDL differentiates itself by focusing specifically on CrowdStrike. Advantages include targeted exposure, while disadvantages include single-stock risk and leverage decay compared to broader technology ETFs.

Historical Performance: Historical performance is highly dependent on the daily performance of CrowdStrike and is significantly impacted by leverage and compounding effects. Investors should review the fund's factsheet for specific performance figures.

Benchmark Comparison: The ETF's benchmark is 2x the daily performance of CRWD. Tracking error can occur due to fees, expenses, and the complexities of leveraged strategies.

Expense Ratio: 1.15

Average Trading Volume

CRDL's average trading volume varies, but generally it is moderate, which can impact the ease of entering and exiting positions.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Economic indicators affecting the technology sector, cybersecurity demand, and investor sentiment towards growth stocks influence CRDL's performance. CrowdStrike's specific company performance is the primary driver.

Growth Trajectory

CRDL's growth trajectory is entirely dependent on the performance of CRWD. Changes to the fund's strategy are unlikely as it is designed to track 2x daily performance.

Competitive Edge

CRDL's competitive advantage lies in providing highly targeted, leveraged exposure to CrowdStrike Holdings, a leading cybersecurity company. This niche focus allows investors to amplify their gains (or losses) based on the daily performance of CRWD. However, this advantage is offset by the risks associated with single-stock leverage and potential leverage decay. CRDL is best used by investors with a very short-term outlook on CrowdStrike.

Volatility

CRDL is highly volatile due to its leveraged nature. Small changes in CrowdStrike's stock price can result in significant gains or losses.

Market Risk

Market risk includes the risk of CrowdStrike underperforming, as well as the risks associated with leveraged ETFs, such as leverage decay and the potential for magnified losses.

Ideal Investor Profile

The ideal investor is an experienced, sophisticated trader with a high-risk tolerance and a short-term investment horizon who seeks leveraged exposure to CrowdStrike.

Market Risk

CRDL is best suited for active traders with a short-term outlook, and is not appropriate for long-term investors due to the effects of compounding and leverage decay.

GraniteShares 2x Long CRWD Daily ETF (CRDL) provides leveraged exposure to the daily performance of CrowdStrike Holdings. It's a high-risk, high-reward instrument suitable for experienced traders with a short-term focus. The ETF's performance is directly tied to CRWD's daily price movements and is subject to leverage decay. Long-term investors should avoid this ETF, while active traders might use it for short-term speculation on CrowdStrike.

• TECL
• QLD
• TQQQ
• FNGU

Data Sources:

• GraniteShares official website
• ETF.com
• Bloomberg
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Leveraged ETFs are complex instruments and involve a high degree of risk. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.