In the crowded landscape of exchange-traded funds, it’s rare to see a new entrant defy expectations with such remarkable speed and success. The Fundstrat Granny Shots US Large Cap ETF (GRNY) is that rare phenomenon—an active fund that has not only gained significant assets in under a year but also delivered competitive returns that rival or exceed established benchmarks. Its meteoric rise underscores a more profound reality: reliance on traditional passive indexing is increasingly being challenged by more dynamic, theme-based investment strategies. The fact that GRNY reached $1.5 billion in assets within just eight months is a testament to the shifting investor mindset, one eager for tactical, story-driven approaches rather than passive index tracking.
This performance surge exposes the flaws in the long-held dogma that success in mainstream investing is a slow, incremental process. It signals that investors are seeking precision and relevance—qualities that the Granny Shots ETF appears to deliver through its disciplined methodology and strategic stock selection. In a world where many funds struggle to outperform the benchmark over extended periods, this fund demonstrates that innovation, even within the confines of large-cap stocks, can create outsized value.
Challenging Market Orthodoxy with a Thematic, Rules-Based Approach
Fundstrat’s strategy is rooted in a no-nonsense, disciplined process—an approach that many hedge or mutual funds often neglect in the pursuit of flashy returns or fleeting trends. Rather than chasing hot sectors or speculative fervor, the ETF leverages a core set of themes: energy security, cybersecurity, artificial intelligence, millennials’ influence, and global labor supply chains. By anchoring its selections to multiple themes that can reinforce each other, the fund intelligently mitigates the volatility typically associated with thematic investing.
What truly distinguishes this ETF is its “multi-layered” theme overlap—choosing stocks that are tied to more than one trend. While many funds chase single themes, the Granny Shots ETF’s focus on stocks that simultaneously support AI and millennials, or cybersecurity and energy, enhances resilience. This multi-trend approach strengthens its ability to outperform in varying market conditions, a feat that many thematic funds cannot consistently achieve. The inclusion of giants like Oracle, Advanced Micro Devices, and Robinhood is not incidental but strategic. These stocks serve as proxy plays on multiple key narratives, buffering the fund against rapid shifts in sentiment.
The disciplined rebalancing every three months emphasizes stability and process over impulsiveness—a clear signal that this isn’t a “buy-and-hold” approach fueled solely by hype. Instead, it reflects a structured process aimed at long-term growth, anchoring its success in data-driven decision making and thematic persistence.
The Fallacy of Short-Term Performance and the Virtue of the Long Game
While the fund’s impressive 14% return this year looks spectacular on paper, what is more telling is the firm’s confidence in sustained outperformance. Too many funds chase momentum, only to flame out once the trend shifts. Lee’s emphasis on thematic storytelling that can persist over years is a deliberate attempt to avoid the trap of short-term gains at the expense of long-term stability.
This mindset is both refreshing and necessary in today’s volatile markets. It reflects a conservative liberalism—careful, disciplined, but open to innovation when aligned with fundamental trends. Instead of seeking quick wins, the fund’s strategy seeks to align with structural developments that will shape market winners over the next decade.
However, it’s crucial to critique this approach openly. The ETF’s focus on around 35 stocks means portfolio concentration risks, and the thematic strategy could falter if the broader narratives fail to materialize. Yet, this risk is mitigated by the process-driven nature of the fund and its reliance on multiple overlapping themes, which provide a shield against abrupt downturns in any single sector.
The Granny Shots ETF exemplifies a pragmatic yet innovative approach to investing—one that prioritizes discipline, thematic continuity, and strategic diversification within the large-cap universe. Its success questions the conventional wisdom that passive indexing is the only sustainable way to generate long-term wealth. Instead, it champions a calculated, story-driven methodology, challenging investors to think outside the index while remaining rooted in fundamental principles.