GraniteShares has launched the world’s first leveraged and unleveraged FAANG, GAFAM, and FATANG ETPs offering investors exposure to mega tech equities.
The suite of 12 ETPs is listed on the London Stock Exchange with the unleveraged strategies commanding a total expense ratio (TER) of 0.69% while the leveraged products charge a TER of 0.99%.
In addition to their respective fees, the products also carry varying levels of transaction costs. These stand at 0.27% for the unleveraged long position ETPs, 0.48% for the unleveraged short positions, 1% for triple-leveraged long positions, and 1.24% for the triple-leveraged short ETPs.
The GraniteShares FAANG ETP (FANG) offers investors exposure to one of tech’s most popular groupings with the strategy offering coverage of Facebook, Amazon, Apple, Netflix, and Google.
Accompanying the unleveraged long strategy, FAANG investors can also invest in the:
- GraniteShares 1x Short FAANG Daily ETP (SFNG)
- GraniteShares 3x Long FAANG Daily ETP (3FNG)
- GraniteShares 3x Short FAANG Daily ETP (3SFG)
With a slightly adjusted focus, the GraniteShares GAFAM ETP (GFAM) ditches its Netflix weighting in favour of an allocation in long-standing tech giant, Microsoft. Its short and leveraged variants include:
- GraniteShares 1x Short GAFAM Daily ETP (SGFM)
- GraniteShares 3x Long GAFAM Daily ETP (3GFM)
- GraniteShares 3x Short GAFAM Daily ETP (3SGF)
Finally, the GraniteShares FATANG ETP (FTNG) perhaps offers the most adventurous exposure, recanting most of the picks from FANG, the ETP then adds a 16.7% towards volatile EV stock, Tesla. Its short and leveraged iterations are the:
- GraniteShares 1x Short FATANG Daily ETP (SFTG)
- GraniteShares 3x Long FATANG Daily ETP (3FTG)
- GraniteShares 3x Short FATANG Daily ETP (3SFT)
All strategies have equal-weighted allocations towards each of their respective constituents and will rebalance quarterly.
Having enjoyed a prolonged rally during 2020, most of the equities featured in the ETPs appear in the S&P 500’s ten largest constituents list. However, having suffered strong corrections in recent weeks, some investors will now be mulling whether the current context offers an attractive entry point for tech stocks.
Will Rhind, founder and CEO at GraniteShares, commented: “We are delighted to launch another first to market ETP suite and give investors pure index exposure to FAANG stocks for the first time.
“This ETP family is an opportunity for investors to express their convictions by investing in the index of their choice on an unleveraged or leveraged basis.”