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GRNJ ETF Outperforms YTD With Small-Cap Value Focus
Fundstrat's GRNJ ETF has returned 12% YTD, beating the S&P 500. The small-cap value fund holds 30-50 stocks selected by quantitative models, with a next rebalance in May.
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Fundstrat's Granny Shot US Small & Mid-Cap ETF (GRNJ) is beating the broader market year to date, driven by its concentrated bet on small-cap value stocks. The ETF, which launched in late 2024, has returned roughly 12% since January, compared with the S&P 500's 6% gain over the same period.
The fund follows a rules-based strategy that picks 30 to 50 small- and mid-cap stocks based on Fundstrat's quantitative models. Its top holdings include regional banks, industrial firms, and energy producers – sectors that have benefited from the Federal Reserve's pause on rate cuts and a weaker dollar. GRNJ's expense ratio is 0.75%, higher than most passive small-cap ETFs but in line with actively managed peers.