Will Rhind, CEO at US ETF provider GraniteShares was interviewed by London South East from New York where Granite is headquartered. Granite Shares is a niche player in the $6 trillion dollar ETF industry and have $1.5 billion dollars of assets under management (AUM).
Will explains to us why ETF's are a useful part of any experienced investors trading portfolio as they offer a low-cost flexible alternative to directly investing in shares, and are efficient from a trading and a liquidity perspective as they can be traded in market hours.
GraniteShares innovative range of three times long and three times short ETF's were recently reviewed in the Financial Times. They allow experienced investors the opportunity to go both long or short on certain popular shares, just as professional hedge fund managers do.
"We have expanded the category by offering leverage on individual companies themselves. We have 40 products in the UK, that's three times leverage both long and short to some of the most popular traded companies in the UK and in the US in tech space." explained Will.
"We have oil majors such as BP and Shell, the banks Barclays and Lloyds, some of the industrials, BAe and Rolls Royce, and miners such as Rio. You can play sector against sector that way if you want."
"Then you have the US tech megacap names such as Apple and Amazon, Tesla, Facebook etc. Much of the performance of the main US benchmark indices have come from these five stocks and it has been a huge megatrend for people to get behind. Covid has brought forward ten years of tech disruption into the last few months", he said.
Three times leverage means you get three times the daily gain of the stock but can only lose the amount which you have invested. "There's also an inbuilt stop loss mechanism above a certain level which helps mitigate losses if the underlying goes against you."