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US ETF providers scramble to give investors new methods to gamble on US tech megacap firms

The Wall Street entrance of the New York Stock Exchange (NYSE) is visible in New York City, U.S., November 15, 2022

March 20 (mod1s) - Asset management businesses eager to give investors yet more options to play the boom in U.S. mega-cap technology stocks are rolling out new exchange-traded funds (ETFs). 

GraniteShares on Monday unveiled three new leveraged ETFs aimed to provide double the daily return of Microsoft (MSFT.O), opens new tab, (AMZN.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab. 

In the 15 months after the business introduced its 2x leveraged Nvidia ETF, its assets have surged to $2 billion.

"We wanted to make a similar product available based on AMD," said Will Rhind, CEO of GraniteShares. 

The ProShares Nasdaq-100 High Income ETF (IQQQ.O), opens new tab debuted on Wednesday. The business stated the new fund's strategy would combine a long position in the Nasdaq-100 Index with a short position in Nasdaq-100 Index call options. The idea, ProShares stated, is to employ swap agreements to capture exposure to those options and produce both total return and high income.

Roundhill Investments also has launched out a number of covered call and leveraged ETFs related to the Nasdaq 100 and the so-called Magnificent Seven - the group of megacap tech firms that has dominated the U.S. market in recent months. 

Direxion, another supplier of leveraged ETFs, has introduced two new funds related particularly to the Magnificent Seven and allowing speculators a means to wager on daily moves in the group. The Direxion Daily Concentrated Qs Bull 2x ETF offers twice their daily gain; its opponent, the Direxion Daily Concentrated Qs Bear 1x ETF , is intended to capture 100% of the opposite of any move in the group.

GraniteShares' Rhind said he plans to create leveraged funds related to companies like American Airlines (AAL.O), opens new tab and Exxon Mobil (XOM.N), opens new tab to establish that demand for these ETFs goes beyond technology stocks. He did not specify a time period for such launches.


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