Tom Lee's Crystal Ball: Sovereign Security and Gen Z Join the ETF Quidditch Team!

A Pensive Start Much Like Sorting Hats

Ah yes the ebb and flow of the market. It reminds me of the Sorting Hat always contemplating where best to place each student. Tom Lee a man of keen insight much like a well brewed potion is stirring new ingredients into his 'Granny Shots US Large Cap ETF.' He's considering sovereign security. It appears companies are now focused on fixing their supply chains within their own borders. A change indeed! As I always say 'It takes a great deal of bravery to stand up to our enemies but just as much to stand up to our friends.' And perhaps to adapt to changing economic tides.

The Rise of the Young Wizards: Gen Z and Beyond

Now this is where it becomes particularly interesting. Lee is looking towards Gen Z comparing them to the millennials who he views as the 'engine' of the market. Just as we must nurture young wizards we must also consider the rising generations in our investments. 'It may not be for a couple of years but I'm kind of sharing our thought process.' Patience young ones patience. As I always say 'Youth cannot know how age thinks and feels. But old men are guilty if they forget what it was to be young.'

Granny Shots: An Unorthodox Approach

Ah the Granny Shots ETF inspired by Rick Barry's… unique free throw style. A curious approach wouldn't you agree? But as I've often noted 'It is our choices Harry that show what we truly are far more than our abilities.' Lee aims to buy the best stocks in each theme spreading the risk like a good defence against the Dark Arts. 'Let's do a correct physics basketball throw underhanded,' he says. 'It doesn't look great but it makes 90% of the shots.' A sound strategy even if it lacks a certain… flair.

The Potion's Ingredients: Themes and Earnings

Lee's ETF concoction starts with seven themes akin to the ingredients of a powerful potion predicted to define the market over the next decade. And a 'granny shot' stock must fit at least two of these themes like a student must possess a certain amount of wizarding talent to be accepted at Hogwarts. 'We're not buying junky stocks. We want to make sure that they generate earnings and high ROIC,' he insists. Prudence my friends is key. It is the quality that is perhaps less celebrated than bravery more subtle than insight and yet is the bedrock of every success.

A Budding Success Story

The results it seems speak for themselves. The Granny Shots ETF launched on November 7th has already amassed a considerable fortune. It surpassed $1 billion in assets under management in May and now sits at $1.3 billion. And it's outperforming the S&P 500! Up almost 15% since January 1st. It makes me wonder if perhaps a small part of my own luck is rubbing off on this venture. As for top holdings Robinhood Oracle and AMD lead the pack.

The Active Management Charm

Dave Nadig an expert in these matters notes the rise of actively managed ETFs. 'Tom's very much a part of it,' he says. 'I think having an active management overlay both on the stock selection and the thematic part can make a lot of sense for investors. It's certainly easier for investors to understand.' Indeed. It seems even in the world of finance a little guidance can go a long way. And who knows perhaps one day we'll see an ETF dedicated entirely to Bertie Bott's Every Flavor Beans. Now *that* would be a risk worth taking!