Basketball-inspired Granny Shots ETF may add two new themes: Tom Lee
Market analyst Tom Lee, known for his bullish outlook on the market, is contemplating two new themes for his Fundstrat Granny Shots US Large Cap ETF. During a recent appearance on CNBC’s “ETF Edge,” he hinted that sovereign security could soon become a key focus for the fund.
Lee highlighted the shift in companies’ supply chain strategies towards a more localized approach within sovereign borders. He believes this trend is here to stay and could have a significant impact on investment opportunities in the future. Additionally, he expressed interest in the younger generation, specifically Gen Z, as a potential theme for the ETF.
Drawing a parallel to the millennial generation, which he described as the driving force behind the market several years ago, Lee emphasized the importance of staying attuned to evolving demographics. He suggested that focusing on Gen Z and eventually Gen Alpha could be a strategic move for the fund in the coming years.
The Granny Shots ETF, inspired by NBA legend Rick Barry’s unconventional free throw technique, aims to select top-performing stocks based on thematic criteria. Lee explained that the fund’s strategy revolves around identifying seven themes that are expected to shape the market over the next decade, ranging from generational shifts to energy security.
To be included in the ETF, a stock must align with at least two of the identified themes and demonstrate strong earnings potential and return on invested capital. The fund undergoes quarterly rebalancing to ensure alignment with its investment strategy.
Since its launch in November, the Granny Shots ETF has garnered significant investor interest, surpassing $1 billion in assets under management by May. As of the latest data, the fund has grown to $1.3 billion and has delivered a 13% return, outperforming the S&P 500 index year-to-date.
The top holdings of the ETF include companies like Robinhood, Oracle, and AMD, as reported by Fundstrat. Independent ETF expert Dave Nadig noted a growing trend towards actively managed ETFs and commended Lee for his thematic approach to stock selection, which provides investors with a clear understanding of the fund’s strategy.
In conclusion, Tom Lee’s innovative approach to thematic investing with the Granny Shots ETF has proven successful so far, attracting investor attention and delivering strong returns. With a focus on emerging themes and active management, the fund continues to outperform traditional benchmarks and remains well-positioned for future growth.
