FBL Profile
The GraniteShares 1.5x Long META Daily ETF is designed to provide investors with leveraged exposure to the daily performance of Meta Platforms, Inc. (formerly known as Facebook). The fund achieves this by entering into swap agreements with major financial institutions. These agreements involve exchanging returns or differentials in rates of return based on the performance of the underlying stock, which in this case is Meta Platforms. The duration of these swap agreements can range from one day to over a year, allowing for flexibility in managing the fund’s leverage and exposure.
This exchange-traded fund (ETF) aims to deliver 1.5 times the daily return of Meta Platforms, meaning that for each percentage point change in the stock's value, the fund seeks to deliver a 1.5% change in its own value, before fees and expenses. This leverage is achieved through the use of financial derivatives, primarily swap agreements, which are contracts between the fund and financial institutions that dictate the terms of return exchanges based on the stock's performance.
Leverage in the ETF introduces increased potential for both gains and losses, magnifying the daily movements of the underlying stock. The fund's use of daily leverage means it is designed for investors who are looking to capitalize on short-term price movements of Meta Platforms and are comfortable with the high volatility associated with leveraged investing. This strategy is particularly suitable for traders and investors with a high risk tolerance and a short-term investment horizon.
The GraniteShares 1.5x Long META Daily ETF offers investors a specialized tool for gaining amplified exposure to Meta Platforms' stock. By focusing on daily performance and employing leverage through swap agreements, the fund targets those seeking to enhance their investment returns based on Meta’s short-term price movements. However, the use of leverage also means that investors should be aware of the increased risk and potential for significant volatility, making it essential to carefully consider the suitability of the fund within their broader investment strategy.
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