GRNY: Risk Remains Elevated For Tom Lee's $4B Granny Shots ETF

The Sunday Investor7.19K FollowersFollow5ShareSavePlay(13min)CommentsSummaryThe Fundstrat Granny Shots US Large Cap ETF is a thematic ETF managed by Tom Lee, a well-known market strategist and founder of Fundstrat Capital. Its expense ratio is 0.75%, and the fund has $4B in assets.GRNY holds stocks based on specific themes, including short-term ones like Style Tilt and Seasonality and longer-term ones like Energy and Cyber Security and Millennials.This update highlights GRNY's continued appeal from a GARP perspective, given its 19.89x forward P/E ratio and 17.62% next year portfolio EPS growth rate.However, the GARP argument falls apart when looking at its components' historical statistics. Given the fund's below-average quality, I worry about valuation compression if growth rates don't materialize.GRNY's recent 8% additional Energy sector exposure could prove timely, but at the same time, it adds risk, and I don't think most investors need that in the current environment. GRNY remains a "hold." ismagilov/iStock via Getty Images Investment Thesis This article continues my coverage of the Fundstrat Granny Shots US Large Cap ETF (GRNY), which I last rated a "hold" in my review on December 1, 2025. I've chosen to remain cautiousThis article was written byThe Sunday Investor7.19K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.

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