Tom Lee’s Fundstrat Granny Shots US Large Cap ETF (GRNY) is making waves—and not just because it’s hitting impressive milestones. In less than nine months since its November launch, this actively managed ETF has surged past $2 billion in assets under management—a feat that’s almost unheard of in today’s competitive ETF landscape, where many funds take years to reach a fraction of that size.
Why is GRNY capturing so much investor attention? It’s all about Tom Lee’s unique approach and the fund’s strategic focus. Lee, a former JPMorgan strategist turned bold market commentator, has cultivated a dedicated online following by delivering timely, transparent insights that resonate with both retail and institutional investors. His mantra with GRNY is simplicity paired with thematic clarity—investing in about 35 high-quality S&P 500 stocks that align with long-term secular trends.
What sets GRNY apart is its thematic framework, which Lee dubs “granny shots”—a nod to the underhand free throw in basketball, symbolizing a steady, reliable approach. The fund targets sectors expected to shape the next five to ten years, including energy, cybersecurity, AI-driven “global labor suppliers,” and the millennial impact on markets. This thematic focus isn’t just clever branding; it represents a forward-looking strategy that anticipates structural shifts rather than chasing short-term fads.
From an investment perspective, GRNY’s performance speaks volumes. With key holdings like Robinhood and Oracle, the ETF has delivered an 18% gain year-to-date, outperforming the S&P 500 by over 9 percentage points. That’s significant outperformance in a market where alpha is increasingly scarce. The fund’s 0.75% expense ratio is reasonable for an actively managed ETF with such a distinct approach, especially given the value it’s providing.
Here’s an insight you won’t find in typical coverage: The rapid asset accumulation in GRNY signals a broader investor appetite for thematic ETFs that combine transparency with actionable, research-backed strategies. According to Morningstar, thematic ETFs have seen inflows exceeding $20 billion in the past year alone, underscoring a shift toward more targeted, conviction-driven investing.
What should advisors and investors take away from this? First, thematic investing is no longer niche—it’s becoming mainstream, driven by funds like GRNY that marry thematic clarity with disciplined stock selection. Advisors should consider integrating thematic ETFs into client portfolios to capture long-term growth areas, but with a keen eye on expense ratios and fund manager credibility. For investors, it’s crucial to look beyond headline sectors and explore funds that articulate a clear, research-based investment thesis.
Looking ahead, expect more innovation in thematic ETFs with a focus on emerging megatrends such as AI, cybersecurity, and demographic shifts. Tom Lee’s success with GRNY may inspire other strategists to launch similarly focused funds, potentially raising the bar for transparency and investor engagement in the ETF space.
In conclusion, GRNY’s meteoric rise is more than just a success story—it’s a bellwether for the evolving ETF market where thematic, actively managed funds that communicate clearly and invest with conviction are winning investor trust and capital. For those looking to stay ahead, watching how these themes develop and which funds lead the charge will be key to capturing outsized returns in the years to come.
Source: Tom Lee’s Granny Shots ETF rakes in $2 billion in AUM just 9 months after inception