GraniteShares ETPs – News / Questions & Answers

What happens with your 1x ETP’s if the underlaying company does a stock split, does the ETP split the same to keep it identical?

Example if Tesla splits, doe the 1x Tesla ETP split the same?

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Sorry about that, its not Granite doing 1x ETP.

Thanks @Oktay

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Hi TopHat,

An ETP (does not matter if it is 1x, 2x, 3x…) track the daily performance of the underlying.
The fact that there is a stock split on the underlying stock will not impact the daily performance.
So it will not change anything for the ETP holder.

It may create difficulties for the issuer, especially if the issuer work with physical replication but it is “the problem” of the issuer only.

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no problem and thanks for this question, even if 1x single stock product are done by GraniteShares competitors… it was a relevent question that is useful also for 3x/-3x single stock ETPs and 1x Stock Basket ETP like FAANG/FATANG/GAFAM.

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GraniteShares: “The value of funds invested in our 3x short single stock ETPs listed on the London Stock Exchange was around $35m million on 1 December 2020, but this increased to around $140m by July this year”.

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Uau, Congrats, @MarcRAFFARD !

For sure, you are also guilty for this. :wink:

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hahaha most probably.
I am doing some calculation about the AUM.
I will be back with interesting stats soon :wink:

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I was referring to actual Nvidea stock which is due to do a stock split, not granite shares. Will granite shares be suspended, or will it just continue as nothing has happened?

Thanks @bmbm365 for the clarification.

So, regarding investors that hold/own the actual Nvidia Stock (NVDA). If you own 1 share that worth now $758, after the stock split you will own 4 shares that will worth approximately $189 (based on today price for this example).

For investors that own 3x NVIDIA Long ETP of GraniteShares (Tickers - GBx: 3LVP ; EUR: 3LVE ; USD: 3LNV ), it will not make any difference. As I explained before, an ETP track the daily performance (or the daily price move if you prefer) of the underlying stock.

If the stock moves up by +10% from $758 to $833… or +10% from $189 to $207, the 3x ETP will do 3 times +10% (minus fees).

The only one thing to be careful, the stock split can generate higher volatility.

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Another week of Earnings.
Tomorrow Netflix - Check out 3x Netflix GraniteShares ETPs
Wednesday Tesla and Microsoft - 3x Tesla & Microsoft GraniteShares ETPs
Reminder, dividends are reinvested on the value of the ETP.

@RLX as promised, I compare the increased AUM with the securities creation.
So the AUM jumped from $35m to $140m, and $105m of ETP have been created during the same period.

This means that overall, on all the investments made by users of GraniteShares ETPs … the result is flat. Of course, some have made good bets and win money while others will have been losing money.

As far as Leveraged and Short ETPs are here to provide a transparent and fair alternative to CFD, we are happy to provide a flat result where most of the CFD providers announce 70% losing money :innocent:

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It means a roughly equilibrium between Long vs. Short positions.

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I know what you mean but no because there is no equilibrium between Long vs. Short positions.
I can check in details, but there is much more long position that short position.

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I apologize because you may be right.
I checked quickly, and for most of the ETP there is more or less twice more AUM on the Long side than on the short side… but there is 2 time more AUM on Tesla Short than Tesla Long (and the weighting of AUM on Tesla is very important).

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Last GraniteShares weekly report

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Next week, I am doing a webinar in French on this YouTube channel to explain the difference of ETF/ETP with synthetic replication and physical replication, advantages and disadvantages of both.

I will do the same topic in English with @Tihomir in September :wink:

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I’d love to watch the English one. Thanks for doing it, @MarcRAFFARD!

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I will post a message here to inform you when this English webinar will be done :slight_smile:

Week ending 23rd July, top performing #singlestockETPs

Top long: +3x #Facebook +26.1%
Top short: -3x #Netflix +8.1%

Full report available on LinkedIn
Past performance is no guarantee of future returns.

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