Asset management firms are introducing new exchange-traded funds (ETFs) to capitalize on the surge in U.S. mega-cap technology stocks. GraniteShares recently launched three leveraged ETFs aimed at delivering twice the daily return of major tech companies Microsoft (MSFT, Financial), Amazon.com (AMZN, Financial), and Advanced Micro Devices (AMD, Financial).
Since its inception 15 months ago, GraniteShares' 2x leveraged Nvidia (NVDA, Financial) ETF has seen its assets grow to $2 billion. CEO Will Rhind expressed the company's intent to expand their product line to include similar offerings for AMD due to its success.
ProShares has also entered the fray with its Nasdaq-100 High Income ETF. This innovative fund combines long positions in the Nasdaq-100 Index with short positions in Nasdaq-100 Index call options. Through swap agreements, it aims to deliver both total return and high income, capitalizing on the options' exposure.
Roundhill Investments is not far behind, having introduced a series of covered call and leveraged ETFs tied to the Nasdaq 100 and the "Magnificent Seven," a group of mega-cap tech stocks that have recently dominated the U.S. market.
Direxion has launched two new funds specifically targeting the Magnificent Seven. These include the Direxion Daily Concentrated Qs Bull 2x ETF, which aims to double the daily gains of the group, and its counterpart, the Direxion Daily Concentrated Qs Bear 1x ETF, designed to achieve 100% of the inverse of any daily movements.
GraniteShares' Rhind also hinted at plans to diversify their leveraged funds portfolio beyond tech stocks, mentioning potential future products tied to American Airlines and Exxon Mobil. However, a specific timeline for these launches was not provided.
