Rolls-Royce Holdings PLC (LSE:RR.), Tesla Inc (NASDAQ:TSLA, ETR:TL0) and NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) were among the top performers for leveraged GraniteShares investment products, as the exchange-traded products (ETPs) provider saw record trading volumes in the Europe and United States.
The company, in a statement, said its assets under management have now eclipsed $4 billion for the first time.
GraniteShares said that AUM has doubled in just the past month and a half, from $2 billion at the start of February.
It comes as the firm’s ‘single stock leveraged ETPs’ delivered outsized returns as these amplified trading products benefitted from the strong performance of the underlying shares.
Nvidia, via GraniteShares’ 3 times leveraged ETP, and Bitcoin proxy Microstrategy, similarly via 3 times leveraged ETP, have provided returns of 1,800% in the past year, according to the investment firm.
Other top performers highlighted by GraniteShares included London-listed engineer Rolls-Royce and Elon Musk’s Tesla.
“Our offering of high conviction ETPs is proving more popular than ever as investors seek to capitalise on opportunities in the market,” chief executive Will Rhind said in a statement.
“For the longer term, it seems clear that AI and crypto-related stocks are set to be the major themes of the year ahead with NVIDIA, Coinbase, and Microstrategy other stocks to watch."
The exchange-traded products each trade under their own stock market tickers on Nasdaq, and can be bought and sold through ordinary brokerage accounts, Granite noted, although the company said that the ETPs are only suitable for professional investors.
Being leveraged, such ETPs tend to be more volatile and therefore riskier than investments in the underlying shares.
They also have additional compounding impacts, as the ETP products are designed to track the daily movements of the underlying shares and as such over time will not accurately reflect changes in the underlying share prices (this will further skew any investment gains and losses).