A US exchange-traded fund (ETF) provider GraniteShares has entered the European market to offer leveraged single-stock products for sophisticated investors.
The firm has launched a platform of short and leveraged single stock daily exchange-traded products (ETPs) on the London Stock Exchange.
For the first time, GraniteShares says, sophisticated investors will be able to take positions on both rising and falling share prices and use leverage, which is traditionally the domain of hedge funds.
A range of 2x and 3x long or short ETPs is offered on 11 major UK-listed companies, including BP, Lloyds Banking Group and Rolls-Royce.
Costs for the 3x long ETPs are 0.0047% a day, and 0.0074% for the 3x short versions.
Will Rhind, founder and chief executive at GraniteShares, said the platform gives investors access to “a new type of investment that didn't exist before”.
He added: “The convenience and transparency provided by ETPs means that investors with the appetite and experience to use leverage can trade through investment platforms rather than having to open a margin account.
“At a time when it has become statistically harder and harder to actually make money in the markets and outperform, GraniteShares is giving investors the ability to express very focused views, both long and short, on popular UK single stocks through ETPs.”
The firm – which was founded in 2016 and has assets of about $697.2 million (€632.0 million) – indicated it would roll out other ETPs in Europe. In the US the firm offers gold, high income and disruptive equity products.
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