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US ETF issuers rush to offer investors new ways to bet on US tech megacap stocks
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US ETF issuers rush to offer investors new ways to bet on US tech megacap stocks
Mar 20, 2024 11:29 AM

March 20 (Reuters) - Asset management companies seeking

to offer investors still more ways to play the boom in U.S.

mega-cap technology stocks are rolling out new exchange-traded

funds (ETFs).

GraniteShares on Monday launched three new leveraged ETFs

designed to generate twice the daily return of Microsoft ( MSFT )

, Amazon.com ( AMZN ) and Advanced Micro Devices ( AMD )

.

In the 15 months since the firm launched its 2x leveraged

Nvidia ETF, its assets have soared 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 launched

on Wednesday. The firm said the new fund's strategy will combine

a long position in the Nasdaq-100 Index with a short position in

Nasdaq-100 Index call options. The goal, ProShares said, is to

use swap agreements to capture exposure to those options and

deliver both total return and high income.

Roundhill Investments also has rolled out a series of

covered call and leveraged ETFs tied to the Nasdaq 100 and the

so-called Magnificent Seven - the group of megacap tech stocks

that has dominated the U.S. market in recent months.

Direxion, another provider of leveraged ETFs, has launched

two new funds tied specifically to the Magnificent Seven and

offering speculators a way to bet on daily movements in the

group. The Direxion Daily Concentrated Qs Bull 2x ETF

delivers double their daily gain; its counterpart, the Direxion

Daily Concentrated Qs Bear 1x ETF, is designed to

capture 100% of the inverse of any move in the group.

GraniteShares' Rhind said he hopes to introduce leveraged

funds tied to stocks like American Airlines ( AAL ) and Exxon

Mobil ( XOM ) to prove that demand for these ETFs extends beyond

technology stocks. He did not give a time frame for those

launches.

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