GraniteShares, a US-based ETF provider, has entered the European market with the launch of a platform of short and leveraged single stock daily Exchange Traded Products (ETPs) listed on the London Stock Exchange.
GraniteShares' new platform of short and leveraged single stock daily ETPs, for the first time, enables sophisticated investors to take positions on both rising and falling share prices.
This new category reflects the evolution of the ETP market from broad index solutions to the ability today to take very targeted positions. Globally, the broad short and leveraged ETP segment has attracted significant investor inflows, growing from $2.4bn in assets under management in 2006 to $75.5bn (£61.4bn) at the end of September 2019.
The launch comes at a time when unprecedented market uncertainty has powered a greater sense of conviction with 76% of investors seeing clear investment opportunities to capitalise on."
Historically, access to leverage on single companies has been the domain of specialists such as hedge funds. GraniteShares has removed the complexity by making such exposures available on exchange, giving sophisticated investors the opportunity to express high conviction views in a transparent, accessible way.
The launch comes at a time when unprecedented market uncertainty has powered a greater sense of conviction with 76% of investors seeing clear investment opportunities to capitalise on.
More than a third of UK investors (37%) identified as being in control of their investment decisions, acting with conviction and wanting to amplify their investment edge - and one in four said they now checked their investments on a daily basis (25%). The research suggested the more frequently people checked their portfolios the more likely they were to see breaking news on companies and market events as opportunities not threats.
Despite this greater appetite to seize opportunity from uncertainty, 56% of investors polled said they did not know what to do - or which investment tools to use - in order to express their conviction.
GraniteShares' new single stock daily ETPs seek to provide a solution for those investors who are willing and prepared to take on the opportunities created by heightened risk.
While the GraniteShares ETPs enable sophisticated investors to take positions on both rising and falling share prices, they can also be used to hedge individual stock exposures, including those in index or fund holdings. By providing transparent access through an ETP, GraniteShares is removing the barriers that sophisticated investors face if they want to use leverage.
Will Rhind, founder and CEO at GraniteShares explained: "At GraniteShares we're giving active investors access to a new type of investment that didn't exist before. The convenience and transparency provided by ETPs means that investors with the appetite and experience to use leverage can trade through investment platforms rather than having to open a margin account.
"At a time when it has become statistically harder and harder to actually make money in the markets and outperform, GraniteShares is giving investors the ability to express very focused views, both long and short, on popular UK single stocks through ETPs."