GraniteShares launches leveraged NIO ETPs

GraniteShares is expanding its market-leading range of high conviction ETPs with the launch of the world’s first leveraged single stock ETPs on NIO, the electric vehicle maker and distributor also known as the “Chinese Tesla”.

Its NIO 3x Long (3LNI) and NIO 3x Short (3SNI) ETPs have listed on the London Stock Exchange and can be traded via ordinary brokerage accounts giving sophisticated investors the opportunity to profit from a rising or falling share price in one of the leading Chinese electric vehicle companies.  

GraniteShares already offers the first Tesla 3x long ETP (3LTS) and 3x Short Tesla ETPs (3STS) which have proved very popular with investors as Tesla’s stock price rise in 2020 propelled it to the most valuable car company in the world. 

NIO, which is listed in the US, saw its shares soar by more than 1,000 per cent last year and is on the brink of expanding operations into Europe as well as considering launching in North America. Moving into Europe – which accounted for 46 per cent of the three million electric car sales last year and where NIO has an R&D centre in Oxford and a design centre in Munich – could help drive further growth.

The company, founded in 2014, saw vehicle deliveries more than double last year and is regarded as a possible way to play the investment trend of a greener China. The Chinese Government is reportedly considering a requirement that 60 per cent of all car sales in the country should be electric by 2035.

The wider electric vehicle market is also growing rapidly with commentators predicting they will make up 20 per cent of all sales globally by 2030 which has helped NIO achieve a valuation bigger than auto giants including Volkswagen, Ford, and General Motors.

Will Rhind, Founder and CEO at GraniteShares, says: “The NIO ETPs are a world-first and give investors magnified exposure to a very popular company in a simple and low-cost way.

“NIO’s share price growth in the past year has been phenomenal reflecting the huge focus on the opportunities in the electric vehicle market. Often dubbed the Tesla of China, it’s a stock we have been consistently asked for by investors. Electric vehicle stocks have really captured the trading zeitgeist of the last 12-15 months and investors naturally want the ability to play both sides of the story.”

GraniteShares is also bringing back its GraniteShares Rolls Royce 3x Short ETP which was closed last year on the back of extreme volatility in the share price. The TER of both ETPs is 0.99 per cent.

The launches build on the recent expansion of the GraniteShares range of options which includes the ground-breaking launch of the world’s first FAANG, GAFAM and FATANG ETPs.

Investing in the tech giants – Facebook, Amazon, Apple, Netflix, and Alphabet in FAANG; Alphabet, Amazon, Facebook, Apple, Microsoft in GAFAM; and Facebook, Amazon, Tesla, Apple, Netflix, and Alphabet in FATANG – focuses on major growth sectors such as Cloud computing, streaming media, smart homes, artificial intelligence, and hardware. The companies in the index represent approximately 20 per cent of the US stock market by capitalisation.

They are part of a focus on high conviction investing which increases exposure to opportunities not available in traditional growth or momentum ETPs while offering a pure investment play instead of the diluted investments in traditional products as well as the same tax and cost benefits. Indices are equally weighted and rebalanced quarterly.