^{Tom Lee, managing partner and head of research at Fundstrat Global Advisors, speaking on CNBC’s “The Exchange” on Oct. 31, 2023. | Adam Jeffery | CNBC}

Tom Lee’s Granny Shots ETF Is Dominating Its Peers — Here’s Why Investors Are Paying Attention

Fundstrat Global Advisors, co-founded by Wall Street strategist Tom Lee, has scored big with its latest venture — the Granny Shots US Large Cap ETF (Ticker: GRNY) — a fund that’s quickly becoming one of the standout performers in the actively managed equity ETF space. Launched just eight months ago in November, GRNY has already amassed $1.5 billion in assets under management (AUM), a rare feat in an industry where many funds struggle to hit even a fraction of that amount within their first few years.

Strong Early Performance vs Benchmarks

The ETF’s results are turning heads. According to FactSet, GRNY has returned 13.7% since inception, significantly outperforming the MSCI USA Large Cap Index, which posted a 7.8% gain during the same period. Based on Morningstar rankings, the ETF’s roughly 14% year-to-date return places it in the top 3% among nearly 1,400 actively managed U.S. large-cap funds.

"This product really seems to be connecting with people," said Tom Lee in an interview with CNBC. "The feedback we’ve received shows that investors aren’t just speculating with it — they’re consistently adding to their positions."

A Thematic Strategy with a Unique Twist

The term “Granny Shots” is inspired by the underhand free throw style in basketball — an unconventional but effective approach. In investing terms, Fundstrat uses it to describe stocks that fall under multiple long-term thematic trends, increasing the potential for stable performance across volatile market cycles.

These themes include:

• Artificial Intelligence and Global Labor Transformation
• Cybersecurity and Digital Infrastructure
• Millennial-driven Consumer Behavior
• Energy Transition and Sustainability

By identifying stocks that overlap in two or more of these areas, the fund aims to boost resilience and upside potential.

“A company that aligns with both AI disruption and millennial demographics is better positioned to outperform,” Lee noted. “If one theme falls out of favor temporarily, the other can still carry the stock forward.”

Portfolio Composition and Management Approach

The ETF holds about 35 S&P 500 stocks, selected through a rules-based process that is rebalanced quarterly. Among its top holdings are:

• Robinhood (HOOD) – representing millennial financial adoption
• Oracle (ORCL) – cloud computing and enterprise AI software
• Advanced Micro Devices (AMD) – chipmaker riding the AI and data center boom

The fund's structure is designed for long-term capital appreciation, prioritizing earnings growth and multi-thematic exposure over short-term momentum.

“The strategy may not look flashy,” Fundstrat’s official ETF page states, “but it’s grounded in a disciplined, rules-based process designed to increase the likelihood of consistent results over time.”

Long-Term Outlook and Investor Appeal

While many active ETFs shine early and fade later, Lee believes GRNY is built for long-haul success. He points to the ETF’s focus on persistent macro themes and structural shifts in the economy as key to enduring performance.

“Our thematic approach is about story arcs that evolve over years — not weeks. That’s how you find long-term outperformers,” Lee said.

With an expense ratio of 0.75%, GRNY is competitively priced for an actively managed product, particularly given its rapid asset growth and consistent outperformance.

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Tom Lee’s Granny Shots ETF is proving to be more than just a catchy name. It reflects a serious, rules-driven investment strategy that blends forward-looking themes with rigorous analysis. As investors search for actively managed alternatives that can navigate shifting market conditions, GRNY stands out as a rising contender with both substance and strategy.

With the ETF crossing the $1.5 billion mark in record time, all eyes will now be on whether the fund can maintain its momentum — and deliver consistent returns — in the quarters and years ahead.