New data from ETP provider GraniteShares has indicated strong investor confidence as global economies recover and GDP growth forecasts increase.
GraniteShares has several single stock 3x leveraged and 3x short ETPs listed on the London Stock Exchange, covering a selection of FTSE 100 companies and popular US tech stocks. In the first three months of 2021, $295 million was traded in these ETPs, with about two thirds, or $211 million, in its leveraged long products suggesting investors are optimistic about the share prices of these stocks rising. Just $83 million – 28% of the total value – was traded in GraniteShares single stock short ETPs.
The most traded 3x leveraged GraniteShares single stock ETP in Q1 2021 was Tesla (3LTS), followed by Rolls-Royce (3LRR) and BP (3LBP). In terms of the most traded 3x short GraniteShares ETPs, Tesla (3STS) was followed by Barclays (3SBC) and Uber (3SUB).
Investors have also been far more active since the beginning of the year. The value traded in GraniteShares single stock leverage and short ETPs listed on the LSE in Q1 2021 was about 40% higher than in Q4 last year.
Investors have been trading more shares during lockdown
“As the Covid-19 vaccination programme gathers pace there is growing optimism around the world – especially in developed markets,” said Will Rhind, Founder and CEO at GraniteShares. “This is reflected in the fact that the International Monetary Fund has recently increased its GDP growth forecasts for 2021 for several leading developed countries, including the UK and US. This filters its way into the psyche of investors and their confidence is rising. With lockdown and more time on their hands, many investors have also dramatically increased the time they spend reviewing their finances, which means many have been trading shares more.”
A study from GraniteShares found 12% of Brits who have bought or sold shares during the Coronavirus crisis – some 2.2 million people – are trying to make it as day traders and dramatically enhance their incomes. Two thirds (66%) of them are men and 34% are women
Of those people interviewed who are trying to be day traders, 16% are aged 18 -24, and 43% are between 25 and 34. One in five (20%) are aged between 35 and 44, and the remainder are 45 and over.
Furlough and redundancy are creating more day traders
The most popular reasons for trying to make a living through day trading are a near tie between people believing they can earn more through trading and those who say Coronavirus has inspired them to work for themselves.
GraniteShares research found furlough and redundancy have played a part in the rise of the day trader – 23% of the new day traders have struggled to find a job after redundancy while 18% have been furloughed. Nearly a quarter (23%) say they got a taste for trading during lockdown and now want to go full-time.
GraniteShares currently offers 54 exchange traded products (ETPs) listed on the London Stock Exchange. They consist of a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK and U.S. markets.