The Fundstrat Granny Shots US Large Cap ETF (GRNY), an actively managed fund, has garnered significant attention, prompting a closer look at its investment thesis and market perception.
Previously, in October 2025, an analysis of GRNY suggested a "hold" rating, emphasizing the need to observe how its management navigated evolving market conditions. GRNY is an actively managed large-cap growth fund, utilizing the unique "granny shots" methodology developed by Tom Lee. With an expense ratio of 0.75% and substantial assets under management totaling $3.8 billion, the ETF has certainly made its mark. However, its initial success has been met with scrutiny regarding its high price-to-earnings (P/E) ratio, a concern frequently voiced by market commentators. Despite these criticisms, a more detailed examination reveals that non-standard calculation methods have contributed to an inflated perception of GRNY's expensiveness. A thorough evaluation of the ETF's valuation demands an integration of both historical performance and future growth projections to truly understand its investment appeal.
The methodology of equal-weighting securities and monthly rebalancing is a key characteristic of GRNY. While the fund's quality attributes are commendable, they may not surpass those found in more cost-effective passive funds. Understanding the nuanced interplay of these factors is crucial for investors weighing GRNY against other investment vehicles. This analysis aims to clarify GRNY's true valuation and assess its attractiveness from a Growth at a Reasonable Price (GARP) perspective, shedding light on whether it aligns with diverse investment strategies.
Investing wisely requires a holistic view, moving beyond surface-level metrics to uncover deeper value and potential. By analyzing funds like GRNY with a comprehensive approach, investors can make informed decisions that align with their long-term financial goals, fostering growth and prosperity in their portfolios.
