AAPB Profile
GraniteShares ETF Trust - GraniteShares 2x Long Tilray Daily ETF is an actively managed exchange-traded fund (ETF) designed to deliver 1.75 times (175%) the daily percentage change of Tilray, Inc. stock. This leveraged ETF achieves its objective by entering into swap agreements with major financial institutions. These agreements allow the fund to exchange returns based on the performance of Tilray stock over a specified period, which can range from a single day to more than one year. The fund’s strategy is focused on providing amplified exposure to Tilray’s daily stock movements, making it a tool for investors who seek short-term, magnified returns tied to this specific underlying asset.
The ETF is non-diversified, meaning it does not spread its investments across a wide range of securities but is concentrated in its exposure to Tilray stock. This lack of diversification increases the potential risk, as the fund’s performance is highly dependent on the movements of a single stock. The fund's strategy involves using financial derivatives, specifically swaps, which are complex instruments that can significantly enhance both potential gains and losses. Investors in this fund should be aware of the high risk associated with leverage and the potential for significant fluctuations in value.
GraniteShares 2x Long Tilray Daily ETF is part of the broader GraniteShares ETF Trust, which offers a range of investment products designed to provide investors with access to unique and specialized market strategies. GraniteShares is known for its innovative approach to ETF management, offering products that focus on providing high-conviction, cost-effective investment solutions. The 2x Long Tilray Daily ETF is specifically tailored for investors with a bullish outlook on Tilray, aiming to capitalize on short-term price movements in the underlying stock.
Investors should consider the ETF's objectives, risks, and expenses before investing. Due to its leveraged nature and reliance on swap agreements, the fund is more suitable for experienced investors who understand the complexities and risks associated with such financial instruments. It is not intended for long-term holding, as the compounding effects of daily leverage can lead to significant deviations from the expected return over extended periods. The ETF's performance is closely tied to daily market conditions and should be monitored regularly to manage the inherent risks effectively.
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