ETP provider GraniteShares is expanding in Germany with the launch on Deutsche Borse Xetra of a further 10 short and long ETPs focused on some of the biggest US technology stocks.
The group, which offers a range of 3x short and 3x leveraged ETPs on popular stocks listed on national exchanges in the UK, France, Italy, and Germany, writes that it is listing the ETPs in response to growing demand in Germany from sophisticated investors.
Datashows total short selling in Germany is valued at around EUR3.316 billion as of May 30th with shares in 105 companies being shorted. The Technology sector accounts for EUR261 million of the total with the Consumer Cyclical sector currently the most shorted.
GraniteShares already offers its FAANG long and short ETPs on Xetra enabling investors to participate in the performance of a US stock basket consisting of the Big Five US technology stocks – Facebook-owner Meta, Amazon, Apple, Netflix and Google owner Alphabet.
It is now listing a 3x Long and 3x Short versions of the FAANG ETPs as well as baskets focused on GAFAM – Google owner Alphabet, Apple, Facebook owner Meta, Amazon and Microsoft – and FATANG – Facebook owner Meta, Amazon, Tesla, Apple, Netflix and Google owner Alphabet.
Benedict von Lucke from GraniteShares, says: “The FAANG stocks along with FATANG and GAFAM have been hit over the past year as inflation and interest rate rises have sent the shares lower but there are signs of a recovery along with the Nasdaq100.
“Many investors are starting to ask if it might be time to think about entering the market again which makes our new listings particularly appealing as they offer the chance to leverage or go short which is increasingly popular with sophisticated German investors looking to capitalise on any market volatility.
“The trend of rising short positions in Germany shows no signs of slowing down this year, and we are already seeing an increasing interest in the shorting of German stocks using products such as ETPs.”