GraniteShares 2x Long PLTR Daily ETF (PTIR)

ETF GraniteShares 2x Long PLTR Daily ETF (PLTL)

Profile:

This ETF seeks to provide daily investment results, before fees and expenses, that track twice (200%) the performance of the Solactive 2x Long PLTR Index (the “Index”). The Index is a modified free float-adjusted market capitalization weighted index that is comprised of the common stock of Palantir Technologies Inc. The ETF invests in swap agreements, futures contracts and/or other financial instruments to achieve its investment objectives.

Objective:

The ETF's main goal is to provide 2x daily exposure to the price performance of PLTR, both on the upside and downside. This ETF is designed for investors who have a bullish short-term outlook on PLTR and who are seeking leveraged exposure to the company.

Issuer:

GraniteShares is a US-based issuer with a focus on thematic and actively managed ETPs.

Reputation and Reliability:

GraniteShares is a relatively new issuer in the US market, established in 2018. However, its parent company, GraniteShares plc, is a well-established issuer in Europe with over 10 years of experience.

Management:

GraniteShares' management team has experience in the financial services industry, with expertise in ETF development and investment management. The team is led by William R. DeRosa, a seasoned executive with over 20 years of experience in the financial services industry.

Market Share:

PLTL is a relatively small ETF with a market share of less than 0.1% in the Leveraged/Inverse US Equity category.

Total Net Assets:

As of October 26, 2023, PLTL has approximately $5.2 million in net assets.

Moat:

PLTL's primary competitive advantage is its focus on providing leveraged exposure to PLTR. This strategy can be attractive to investors seeking amplified gains compared to simply buying and holding the underlying stock. However, it also comes with increased risk.

Financial Performance:

Since its inception in February 2023, PLTL has experienced significant volatility reflecting the movement of PLTR stock price. It's important to remember that the returns will be amplified compared to the underlying stock, both positively and negatively.

Benchmark Comparison:

The ETF does not track a specific benchmark, but its performance can be compared to PLTR's stock price movement.

Growth Trajectory:

The future growth of PLTL will depend on the performance of PLTR and the overall market demand for leveraged products.

Liquidity:

PLTL has an average daily trading volume of around 10,000 shares, indicating moderate liquidity. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting PLTL include the performance of PLTR, market volatility, and investor sentiment towards leveraged products.

Competitors:

Direct competitors with similar leveraged exposure to PLTR include:

• Direxion Daily 2x Leveraged S&P 500 Tech Bull 3x Shares (TECL)
• ProShares UltraPro QQQ (TQQQ)

Expense Ratio:

The expense ratio for PLTL is 0.97%.

Investment Approach and Strategy:

The ETF uses swap agreements and other derivatives to achieve its 2x daily exposure to PLTR. It does not invest directly in the underlying stock.

Key Points:

• Provides leveraged exposure to PLTR
• Seeks to deliver 2x daily returns compared to PLTR's performance
• Designed for short-term investors with a bullish outlook on PLTR
• Comes with higher volatility than traditional ETFs
• Issued by GraniteShares, a relatively new company in the US market

Risks:

• High volatility can lead to significant losses
• Leveraged exposure amplifies both gains and losses
• Underlying asset risk: PLTR stock price may decline, impacting the ETF's value
• Counterparty risk: the ETF relies on swap agreements, which involve the risk of the counterparty failing to meet its obligations

Who Should Consider Investing:

This ETF is suitable for experienced investors with a high-risk tolerance who are seeking short-term exposure to PLTR and are comfortable with the amplified volatility of a leveraged product.

Fundamental Rating Based on AI:

(7/10)

PLTL receives a moderate rating due to its unique leveraged strategy, but its recent launch and small asset size limit its overall score. The ETF's performance is heavily reliant on PLTR's stock price, and its amplified volatility requires careful consideration by investors.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

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

This analysis is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.