Fundstrat’s Tom Lee Reveals New Themes for Granny Shots ETF
In a recent appearance on CNBC’s “ETF Edge,” Tom Lee, the chief investment officer of Fundstrat, discussed potential new themes for his Granny Shots US Large Cap ETF. One of the themes he is considering is sovereign security, noting that companies are taking steps to fix their supply chains within sovereign borders. Lee believes this shift will have a lasting impact on the market for years to come.
Additionally, Lee is looking at Gen Z as a potential theme for the ETF. He compares this generation to millennials, who he describes as “the engine” of the market when Fundstrat first began researching themes seven years ago. Lee believes that focusing on younger cohorts like Gen Z and Gen Alpha will be crucial for the future success of the ETF.
The Granny Shots ETF, inspired by NBA legend Rick Barry’s underhanded free throw style, follows a strategy that involves investing in companies that align with Fundstrat’s predicted market themes over the next decade. To be included in the ETF, a stock must fit at least two of these themes and demonstrate strong earnings and return on invested capital.
Since its launch on Nov. 7, the Granny Shots ETF has been successful in attracting investors, reaching over $1 billion in assets under management by May. As of last week, the fund has grown to $1.3 billion and has outperformed the S&P 500, with a 13% increase in value since its launch.
The top three holdings of the Granny Shots ETF, as of July 3, include Robinhood, Oracle, and AMD. Independent ETF expert Dave Nadig has noted a growing interest in actively managed ETFs like Granny Shots, emphasizing the value of an active management overlay for investors.
Overall, Tom Lee’s innovative approach to thematic investing with the Granny Shots ETF has proven to be successful, with strong performance and a focus on emerging market trends. Investors looking for a unique and actively managed ETF may find the Granny Shots US Large Cap ETF to be a compelling option for their portfolio.
