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.