The Fundstrat Granny Shots US Large Cap ETF (GRNY) is causing a stir among capital market participants. It was originally conceived by Tom Lee and his staff over at Fundstrat Global Advisors. The pioneering exchange-traded fund, which launched in November 2022, clearly struck a nerve. It took off like a rocket ship, reaching $1.5 billion in assets under management within their first eight months. Strong underlying fundamentals propelled it past the MSCI USA Large Cap Index over the period since inception. Consequently, investors are being rewarded with a return of 13.7%, compared to just 7.8% from the index.
The GRNY ETF includes a concentrated portfolio of approximately 35 stocks that are fundamentally chosen from the S&P 500. This thoughtfully constructed portfolio is positioned to benefit from several long-term trends and should drive consensus-earnings growth. Every three months, the fund rebalances its holdings to account for changing market conditions. It features a very attractive expense ratio of 0.75%. This is what makes it an attractive option to investors looking for a results-driven, smart and disciplined investment strategy.
Tom Lee, managing partner and head of research at Fundstrat For one, he points to the success of the GRNY ETF as being due in part to its stock-picking methodology being multifaceted. He reasons that by choosing stocks that cater to several themes, it makes the fund more resilient even when market dynamics change dramatically.
“A stock that’s both an AI story and tied to millennials then has a better chance of outperforming, because at any moment AI may not be in favor, but millennials might, so you’re improving your chances of continuous outperformance.” – Tom Lee
This thematic investing strategy has attracted a hit chord with the investor community, which has resulted in sustained buying demands instead of simply one-off speculative buys. A huge part of the success of this fund that I think is really appealing is we’re working in a very, very crowded market space.
“It’s definitely been a positive surprise because we know how crowded the space is. This product really seems to be connecting with people, and from the comments we’ve received…people have been buying it regularly, so they’re not doing it as a one-time speculative purchase.” – Tom Lee
Fundstrat’s website elaborates on the strategy behind GRNY, stating, “The strategy may not look flashy — but it’s grounded in a disciplined, rules-based process designed to increase the likelihood of consistent results over time.” This level of disciplined and intentional building is absolutely essential in today’s fraught investment environment.
The new Fundstrat Granny Shots US Large Cap ETF is catching on super fast. Well, it turns out that it’s on its way to becoming the most successful active stock fund of 2025. Now Tom Lee’s firm can demonstrate its stock-picking prowess. Simultaneously, it provides investors an opportunity to benefit from uniquely positioned growth narratives.
“I think the idea of using a thematic approach and thinking about the story arcs that last a long time to find the stocks that outperform, I think that’s what’s really resonated with us. I think that is how you can still outperform.” – Tom Lee