Latest news with #FundstratGrannyShotsUSLargeCapETF
CNBC
11-07-2025
- Business
- CNBC
Tom Lee's Granny Shots ETF is crushing the market and raking in cash
Tom Lee's Fundstrat Capital rose to prominence with timely macroeconomic calls on the market, and now his new ETF is flexing the firm's stock picking prowess. The Fundstrat Granny Shots US Large Cap ETF (GRNY) is quickly emerging as one of the most popular and successful active stock funds of the year. The fund hit $1.5 billion in assets under management just eight months after its launch last November, rapidly growing in an industry where some funds take years to reach 10% of that level. Performance has also been excellent so far compared to peers and a benchmark index. The fund has outperformed the MSCI USA Large Cap Index since inception, 13.7% to 7.8%, according to FactSet. Measured by Morningstar, the fund's return of about 14% this year is in the top three percent in its category, which includes nearly 1,400 other funds. "It's definitely been a positive surprise because we know how crowded the space is. ... This product really seems to be connecting with people, and from the comments we've received ... people have been buying it regularly, so they're not doing it as a one-time speculative purchase," Lee told CNBC about the fund's growth. The "granny shot" in the title is a reference to shooting a basketball free throw underhanded. For Fundstrat, it means a stock that falls under multiple key investment themes which the firm is tracking that drive earnings growth. Those themes include energy and cyber security, an AI-category called global labor suppliers, and the impact of millennials. "The strategy may not look flashy — but it's grounded in a disciplined, rules-based process designed to increase the likelihood of consistent results over time," the fund's website says. The result is a portfolio of about 35 S&P 500 stocks, rebalanced every three months. Top holdings currently include Robinhood, Oracle and Advanced Micro Devices. Picking stocks that fall under multiple themes helps the fund stand up under changing market moods, Lee said. "A stock that's both an AI story and tied to millennials then has a better chance of outperforming, because at any moment AI may not be in favor, but millennials might, so you're improving your chances of continuous outperformance," Lee said. The next step will be sustaining the outperformance over the long-term, which has tripped up many star fund managers in the past. Lee said he believes the focus on long-term trends and earnings growth gives this strategy staying power. "I think the idea of using a thematic approach and thinking about the story arcs that last a long time to find the stocks [that] outperform, I think that's what's really resonated with us. I think that is how you can still outperform," Lee said. The Granny Shots fund has an expense ratio of 0.75%.
CNBC
03-07-2025
- Business
- CNBC
Slam dunk? Fundstrat's Tom Lee considers two new themes for his Granny Shots ETF
Long-time market bull Tom Lee is considering two new themes for his Fundstrat Granny Shots US Large Cap ETF. On CNBC's "ETF Edge" this week, he revealed sovereign security could soon make the cut. "It's now evident to me that the mechanisms are in motion for companies to really fix their supply chains within a sovereign border, and that's a change," the firm's chief investment officer said. "That's not going to just be one or two years." He's also looking at Gen Z. Lee compares the generation to millennials, who he called "the engine" of the market when Fundstrat first began researching themes seven years ago. "That means we need to be focusing on Gen Z and then Gen Alpha, so we might have to evolve our demographic theme to kind of orient towards the younger cohorts," he said. "It may not be for a couple years, but I'm kind of sharing our thought process." Lee's Granny Shots ETF was inspired by NBA legend Rick Barry's awkward free throw style. 'If you buy the best stocks in each theme, then you're hanging your hat on a single idea. So we said, 'Let's be like Rick Barry. Let's do a correct physics basketball throw, underhanded,'" said Lee. "It doesn't look great, but it makes 90% of the shots." According to Lee, the ETF's strategy starts with seven themes Fundstrat predicts will define the market over the next 10 years — from millennials to energy security. To be considered a granny shot, a stock must fit at least two of the themes. "We're not buying junky stocks. We want to make sure that they generate earnings and high ROIC [return on invested capital]," Lee said. "We rebalance every quarter." So far, the Granny Shots ETF, which was launched on Nov. 7, is scoring investors. In May, Fundstrat reported the ETF crossed the $1 billion in assets under management milestone. As of last week, Lee said the fund grew to $1.3 billion. Since its launch, the ETF is up 13% as of Thursday's close. The fund is beating the S&P 500 so far this year. It's up almost 15% since Jan. 1 while the index is up about 7%. As of July 3, Fundstrat reports its top three holdings are Robinhood, Oracle and AMD. Independent ETF expert Dave Nadig said he's observed recently that ETFs with active management styles are gaining traction. "Tom's very much a part of it," Nadig said in the same interview. "I think having an active management overlay, both on the stock selection and the thematic part, can make a lot of sense for investors. It's certainly easier for investors to understand."
Yahoo
09-06-2025
- Business
- Yahoo
Tom Lee Dismisses Worries Over Tumbling TSLA Stock Amid Elon Musk-Trump Feud: 'Tesla Still Holds All Of Its Advantages, So We Aren't Too Concerned'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Tesla Inc. (NASDAQ:TSLA) saw a sharp decline last week as the tensions between Elon Musk and President Donald Trump flared up on social media, however, this expert predicts no change in its long-term view despite the fall. What Happened: After Trump and Musk's public spat on Thursday, the automaker erased over $152 billion in market capitalization; however, Tom Lee, the CIO at Fundstrat Capital, remains positive on the stock. In a video reshared on X, Lee said, the decline that we have seen recently is just coming back to support. 'I don't think the long-term picture has changed much for Tesla,' he said. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Furthermore, he highlighted Tesla's leadership and competitive strength in electric vehicle design and manufacturing, an affordable robotaxi product launching soon, Optimus robots with movement dexterity, and its foray into drones. 'Will all that Tesla still holds all of its advantages, so we aren't too concerned about the decline,' Lee Wedbush analyst Dan Ives also reiterated Lee's views, saying that 'Trump/Musk going from BFFs to frenemies does not change our bullish view of the autonomous path looking forward.' He said that Wedbush still expects Trump to green light the regulatory federal framework for autonomous vehicles regardless of the feud. Why It Matters: Tensions rose between Musk and Trump when he called the 'Big Beautiful Bill' a "disgusting abomination" earlier this week, and both were seen allaying accusations against each other over the disagreement on the bill Thursday. However, the stock rose 3.67% on Friday after a signal that both parties could be headed for a truce. Lee's Fundstrat Granny Shots US Large Cap ETF (NYSE:GRNY), which holds about 38 stocks, includes Tesla with 2.27% of weight. Apart from this, the exchange-traded fund's top holdings include Robinhood Markets Inc. (NASDAQ:HOOD) with a weight of 3.06%, General Electric Co. (NYSE:GE) at 2.96%, GE Vernova Inc. (NYSE:GEV) at 2.83% and Nvidia Corp. (NASDAQ:NVDA) weighting 2.79%. The GRNY ETF has gained 7.28% on a year-to-date basis, and it has been up 4.30% since its inception in November last year. Despite Tesla's decline, the ETF rose 3.04% over the last week. Shares of Tesla slumped 14.11% in the last week, and they were down by 22.18% in 2025. However, over the last year, the stock has risen by 69.83%. Read Next: In terms of getting money back, these bank accounts put traditional checking and savings accounts to shame. Maximize saving for your retirement and cut down taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Photo courtesy: Tada Images / This article Tom Lee Dismisses Worries Over Tumbling TSLA Stock Amid Elon Musk-Trump Feud: 'Tesla Still Holds All Of Its Advantages, So We Aren't Too Concerned' originally appeared on
