The Fundstrat Granny Shots ETF investment process selects a portfolio of stocks that match certain themes identified by the Portfolio Managers. The investment process combines a top-down fundamental research process with a quantitative, bottom-up stock selection process. Those stocks which are represented in at least two of the themes identified are included in the Fund.
Ticker | Name | Sector | Style Tilt | Seasonality | PMI Recovery | Energy/Cyber Security | Millennials | Labor Supplier | Easing Financial Conditions | Total Themes |
---|---|---|---|---|---|---|---|---|---|---|
AAPL | Apple Inc. | Information Technology | ✓ | ✓ | ✓ | 3 | ||||
AMD | Advanced Micro Devices | Information Technology | ✓ | ✓ | 2 | |||||
AMZN | Amazon.Com Inc | Consumer Discretionary | ✓ | ✓ | 2 | |||||
ANET | Arista Networks | Information Technology | ✓ | ✓ | 2 | |||||
AXON | Axon Enterprise, Inc. Common Stock | Industrials | ✓ | ✓ | 2 | |||||
AXP | American Express Company | Financials | ✓ | ✓ | ✓ | 3 | ||||
BK | Bank of New York Mellon Corporation | Financials | ✓ | ✓ | 2 | |||||
BKNG | Booking Holdings Inc. Common Stock | Consumer Discretionary | ✓ | ✓ | 2 | |||||
CAT | Caterpillar Inc. | Industrials | ✓ | ✓ | ✓ | ✓ | 4 | |||
CBRE | CBRE GROUP, INC. | Real Estate | ✓ | ✓ | 2 | |||||
CDNS | Cadence Design Systems | Information Technology | ✓ | ✓ | 2 | |||||
COST | Costco Wholesale Corp | Consumer Staples | ✓ | ✓ | 2 | |||||
CRWD | CrowdStrike Holdings, Inc. Class A Common Stock | Information Technology | ✓ | ✓ | 2 | |||||
EMR | Emerson Electric Co. | Industrials | ✓ | ✓ | 2 | |||||
ETN | Eaton Corporation, plc Ordinary Shares | Industrials | ✓ | ✓ | 2 | |||||
GOOGL | Alphabet Inc. Class A Common Stock | Communication Services | ✓ | ✓ | ✓ | ✓ | 4 | |||
GRMN | Garmin Ltd | Consumer Discretionary | ✓ | ✓ | ✓ | ✓ | 4 | |||
GS | Goldman Sachs Group Inc. | Financials | ✓ | ✓ | 2 | |||||
GWW | W.W. Grainger, Inc. | Industrials | ✓ | ✓ | ✓ | ✓ | 4 | |||
IR | Ingersoll Rand Inc. Common Stock | Industrials | ✓ | ✓ | 2 | |||||
ISRG | Intuitive Surgical Inc. | Health Care | ✓ | ✓ | 2 | |||||
JCI | Johnson Controls International plc | Industrials | ✓ | ✓ | 2 | |||||
JPM | JPMorgan Chase & Co. | Financials | ✓ | ✓ | 2 | |||||
LDOS | Leidos Holdings, Inc. | Industrials | ✓ | ✓ | 2 | |||||
META | Meta Platforms, Inc. Class A Common Stock | Communication Services | ✓ | ✓ | ✓ | ✓ | ✓ | 5 | ||
MSFT | Microsoft Corp | Information Technology | ✓ | ✓ | 2 | |||||
NFLX | NetFlix Inc | Communication Services | ✓ | ✓ | 2 | |||||
NVDA | Nvidia Corp | Information Technology | ✓ | ✓ | ✓ | 3 | ||||
ORCL | Oracle Corp | Information Technology | ✓ | ✓ | 2 | |||||
PANW | Palo Alto Networks, Inc. Common Stock | Information Technology | ✓ | ✓ | 2 | |||||
PGR | Progressive Corporation | Financials | ✓ | ✓ | ✓ | 3 | ||||
PWR | Quanta Services, Inc. | Industrials | ✓ | ✓ | ✓ | 3 | ||||
SPGI | S&P Global Inc. | Financials | ✓ | ✓ | 2 | |||||
TDG | TransDigm Group Incorporated | Industrials | ✓ | ✓ | ✓ | 3 | ||||
TSLA | Tesla, Inc. Common Stock | Consumer Discretionary | ✓ | ✓ | 2 |
Holdings as of November 7, 2024
Style tilts, sometimes referred to as portfolio tilts, represent a portfolio’s exposure to various factors that may allow investors to achieve a higher expected return. Historically, various factors have engendered cyclicality across market and economic regimes. For example, a shift in interest-rate expectations may cause one factor to outperform another. The GRNY ETF attempts to capture these regime shifts over time by adjusting the style tilt quarterly. The Fundstrat team utilizes a proprietary mix of style factors including both cyclicality and quality factors. For a given style tilt, the underlying stock selection utilizes the Granny Quantitative Model.
Historically, certain industry groups or stocks may exhibit recurring patterns of performance during specific periods. By reviewing various arrays of returns over long time periods, the GRNY ETF seeks to determine which industries may exhibit superior relative performance over the ensuing 6-month period. The GRNY ETF evaluates its seasonal exposure to industry groups quarterly via the use of proprietary models that analyze historical win ratios. For the industry groups identified, the underlying stock selection utilizes the Granny Quantitative Model.
The PMI is a monthly economic indicator based on survey responses by private-sector companies in the manufacturing and services sectors. The index typically includes factors such as new orders, production, employment, supplier deliveries, and inventories. The PMI is measured on a scale of 0-100, where a reading above 50 indicates expected expansion. Fundstrat Capital sees a relationship between yield-curve dynamics and PMI that imply that the latter has bottomed out, and seeks to gain exposure to companies benefitting from the forecasted recovery.
Generations have personalities shaped by various cultural and technological forces. For most of the past decade, discussions about millennials (96 million, peak size) have focused on their youth and teenage tendencies. Meanwhile, their economic impact on the U.S. and global economy has been accelerating. The GRNY ETF seeks to identify those stocks best positioned to benefit from the spending power and influence of this cohort.
Automation brings cost savings and greater efficiency, while AI mitigates labor shortages and enhances productivity. We identify those companies whose business models are best poised to benefit from the labor-supply dynamics, as well as those firms offering the most accessible, comprehensive, and resilient enterprise AI solutions.
Given the less-than-clear status of the energy transition, the increased incidence of climate-change-caused adverse-weather events and their impact on the power grid, stress on the electrical grid from data-center demand, and geopolitical tensions that endanger energy security, we monitor companies well positioned to perform in this uncertain environment.
As macroeconomic conditions improve, certain industries and companies are in a position to benefit. We analyze their prospects and include them in our portfolio accordingly.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM https://grannyshots.com. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
FOR A COMLETE LIST OF HOLDINGS GO TO https://grannyshots.com. HOLDINGS ARE SUBJECT TO CHANGE WITHOUT NOTICE.
The principal risks of investing in the Fund are summarized below. As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund. Some or all of these risks may adversely affect the Fund's net asset value per share ("NAV"), trading price, yield, total return, and/or ability to meet its investment objective. For more information about the risks of investing in the Fund, see the section in the Fund's Prospectus titled "Additional Information About the Fund-Principal Risks of Investing in the Fund."
Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers.
Models and Data Risk. The composition of the Fund's portfolio is heavily dependent on investment models developed by the Sub-Adviser as well as information and data supplied by third parties ("Models and Data"). When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities from the Fund's portfolio that would have been excluded or included had the Models and Data been correct and complete.
Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors,errors of the Fund's service providers, counter parties or other third-parties, failed or inadequate processes and technology or systems failures. The Fund relies on third-parties for a range of services, including custody.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
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