GRNJ: Fundstrat's High-Risk Strategy Is Starting To Hurt

Fundstrat Granny Shots US Small- & Mid-Cap ETF maintains a high-risk, high-reward growth strategy with a 1.51 five-year portfolio beta. GRNJ's active management allows monthly thematic shifts, but recent allocations show increased tech exposure and persistent low-quality metrics. The fund's 22.81% next-year EPS growth and 18.36x forward P/E are offset by weak profitability and quality, with net margins at 7.66%. Fundstrat's CIO Tom Lee explains his reasoning behind the strategy, but I believe more caution is warranted. This article offers a different view from the Capital Group as support. I expect GRNJ will continue to be subject to large gains and losses, with the added risk not outweighing the reward compared to its Russell 2500 benchmark. Therefore, it's a "hold."

Investment Thesis I last reviewed the Fundstrat Granny Shots US Small- & Mid-Cap ETF ( GRNJ ) on June 16, 2026, when I noted how its high-risk, high-reward strategy had worked well to date but that it was still