GraniteShares ETF Trust - GraniteShares Nasdaq Select Disruptors ETF (DRUP)

GraniteShares ETF Trust - GraniteShares Nasdaq Select Disruptors ETF (BATS: DISR)

Profile: This actively managed ETF invests in innovative companies listed on the Nasdaq Stock Market. Its primary focus is on disruptive businesses with high growth potential across various industries. The ETF seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 50-75 stocks.

Objective: The primary investment goal of DISR is to generate capital appreciation by actively investing in a portfolio of disruptive growth companies identified using proprietary research and quantitative models.

Issuer: GraniteShares, a US-based ETF issuer with a focus on thematic and actively managed investment strategies, manages DISR. GraniteShares has a relatively short track record, established in 2019. However, they have garnered recognition for their innovative ETF offerings.

Market Share: DISR is a niche player in the broader disruptive technology ETF market. As of November 2023, it holds a market share of approximately 0.5%.

Total Net Assets: DISR's total net assets are approximately $25 million.

Moat: DISR's competitive advantages include:

• Active management: Utilizing proprietary research and quantitative models allows for flexibility in portfolio construction and the identification of high-growth potential companies.
• Focus on disruptive growth: Targeting companies with the potential to disrupt existing markets and industries offers access to long-term growth opportunities.
• Concentrated portfolio: Investing in a limited number of holdings allows for deeper exposure to individual companies and potentially higher returns.

Financial Performance: DISR has a limited track record, launched in October 2022. Since inception, it has outperformed the Nasdaq 100 Index, demonstrating its ability to identify and invest in high-growth companies. However, past performance is not indicative of future results, and investors should conduct their own research.

Benchmark Comparison: DISR uses the Nasdaq 100 Index as a benchmark. Since inception, it has surpassed the benchmark's performance, indicating the effectiveness of its active management approach.

Growth Trajectory: The disruptive technology sector is expected to continue its growth trajectory, fueled by advancements in artificial intelligence, cloud computing, and other emerging technologies. DISR is well-positioned to benefit from this growth.

Liquidity: DISR has an average daily trading volume of approximately $5 million, indicating moderate liquidity. The bid-ask spread is typically tight, reflecting efficient market pricing.

Market Dynamics: Factors affecting DISR's market environment include:

• Technological innovation: The pace and direction of technological advancements significantly impact disruptive companies' potential.
• Economic conditions: Overall economic growth and market volatility influence investor sentiment towards growth-oriented investments.
• Regulatory landscape: Changes in regulations can affect the competitive landscape and disrupt specific sectors.

Competitors: Key competitors include:

• ARK Innovation ETF (ARKK) with a market share of 25.5%.
• Invesco QQQ Trust (QQQ) with a market share of 17.5%.
• iShares Expanded Tech Sector ETF (IGV) with a market share of 8.5%.

Expense Ratio: DISR's expense ratio is 0.79%, slightly above the average for actively managed ETFs.

Investment approach and strategy:

• Strategy: DISR actively manages its portfolio to invest in disruptive growth companies identified using proprietary research and quantitative models.
• Composition: The portfolio primarily comprises stocks of disruptive companies across various industries, including technology, healthcare, and financials.

Key Points:

• Actively managed ETF focused on disruptive growth companies
• Outperformed benchmark since inception
• Moderate liquidity
• Higher expense ratio compared to passive options

Risks:

• Volatility: DISR invests in high-growth companies, inherently more volatile than established firms, leading to potential price fluctuations.
• Market risk: The ETF's performance is highly dependent on the overall market performance and specific sectors it invests in.
• Concentration risk: The concentrated portfolio increases exposure to individual company performance and potential losses if a company underperforms.

Who Should Consider Investing: Investors seeking potential for high growth and comfortable with higher volatility and market risks may consider DISR. However, it's crucial to conduct thorough due diligence and understand the specific risks involved before investing.

Fundamental Rating Based on AI (1-10): 7

DISR receives a rating of 7 based on an AI analysis considering various fundamental factors. The active management, focus on disruptive growth, and solid performance contribute to a positive assessment. However, the limited track record, moderate liquidity, and higher expense ratio warrant further consideration.

Resources:

• GraniteShares DISR ETF: https://graniteshares.com/etf/disr/
• Yahoo Finance DISR ETF: https://finance.yahoo.com/quote/DISR/

Disclaimer: The information provided is for general knowledge and educational purposes only and does not constitute financial advice. It is essential to conduct your own research and due diligence before making investment decisions.