New analysis reveals total assets under management held in GraniteShares single stock leveraged and inverse single stock FTSE 100 ETPs has increased 134% in a year as investors look for opportunities in a UK stock market that some consider undervalued.
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Will Rhind, Founder and CEO at GraniteShares
AUM HELD IN “UNDERVALUED” FTSE 100 STOCKS RISES 134% IN A YEAR
- But investors are equally split on going long and short, GraniteShares data shows
GraniteShares is a global issuer of Exchange Traded Products (ETPs) with more than $4 billion under management. It offers a range of ETPs, including 11 single stock FTSE 100 3x long and 3x short ETPs on AstraZeneca, BAE Systems, Barclays, BP, Diageo, Glencore, Lloyds Banking Group, Rio Tinto, Royal Dutch Shell, Rolls-Royce and Vodafone.
Its analysis reveals investors are equally split on whether to go long on stocks in the expectation share prices will rise or short in the expectation they will continue to underperform.
Its biggest recorded rise in AUM at 284.55% is for the GraniteShares 3x Short Lloyds Banking Group Daily ETP followed by 271.66% for GraniteShares 3x Long Rolls-Royce Daily ETP.
The FTSE-100 despite climbing around 7.65% year to date and hitting a series of record highs has underperformed foreign markets gaining just 3.9% last year compared with a global average of around 20%.
The S&P500 gained 25% last year and is up around 9.4% this year. The FTSE 100PE ratio is around 12* compared with 23* for the S&P 500 causing some analysts to say UK stocks are unloved, and undervalued.
Other single stock ETPs seeing big rises in AUM in the past year include GraniteShares 3x Long Barclays Daily ETP up 110.8% and GraniteShares 3x Short Diageo Daily ETP up 89.82%. The biggest falls in AUM for single stock ETPs were GraniteShares 3x Long Royal Dutch Shell Daily ETP down 52.35% and GraniteShares 3x Long Diageo Daily ETP down 63.92%.
Of the 11 posting gains in AUM six were long and five were short while of the 11 posting falls in AUM six were short and five were long.
Will Rhind, Founder and CEO of GraniteShares, said: “UK listed companies are currently trading with earnings multiples at large discount to the U.S. market. Indeed the market cap of Apple (AAPB) is larger than the entire market capitalisation of the UK. (AAPB, $2.9 Trillion vs FTSE100 $2.5Trillion)
“The recent record highs in the FTSE-100 are long overdue when investors look at the strong performance of other markets however it is clear that many investors remain unconvinced as we have seen money going into short ETPs as much as it is into going long ETPs.
Source: ETFWorld.co.uk
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