GraniteShares enters the UK Market offering short and leveraged single stock daily ETPs with Solactive Indices
GraniteShares, the U.S. based ETF provider, has entered the European market with a platform of short and leveraged single stock daily Exchange Traded Products (ETPs) for major companies, all of which are listed on the London Stock Exchange. The ETPs track indices taken from Solactive’s new Single Stock Leverage Index Family exclusively.
Products on leveraged indices have been rising in popularity, growing from USD 2.4 bn in assets under management in 2006 to a substantial amount of USD 75.5 bn at the end of September 2019. Primarily, this development owes its popularity to the increasingly fast-changing nature of markets: a constantly growing interweaving of international stock markets in light of an ever more globalized world economy often results in higher market volatility, which sparks the necessity for more frequent tactical repositioning of portfolios and the ability to hedge stock risk in broad index and active funds exposures alike.
The release of the ETPs creates a novum within the ETP product space since leverage on single stocks has primarily been a domain of hedge funds. GraniteShares, in collaboration with Solactive, facilitates leveraged access to stock and enables sophisticated investors to place strategic positions on stocks employing only a fraction of the required capital. The ETPs also provide them with the ability to hedge stock-specific risks in portfolios.
“As market uncertainty rises, investors require advanced strategies to react to market changes quickly and efficiently. Solactive’s Single Stock Leverage Index Family offers investors a straightforward approach to achieve their positioning targets,” says Timo Pfeiffer, Chief Markets Officer at Solactive. “We are delighted to find a partner in GraniteShares that shares our ambition to push the boundaries of index-based investment once more.”
Will Rhind, Founder and CEO of GraniteShares, commented: “GraniteShares focuses on providing innovative and disruptive solutions that can help investors achieve their investment goals. Working with Solactive has enabled us to launch short and leveraged single stock ETPs, a new category reflecting the evolution of the ETP market from broad index solutions to the ability today to take very targeted positions. It’s a very exciting development.“