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Star strategist Tom Lee from Fundstrat landed a slam dunk with his Fundstrat Granny Shots US Large Cap ETF (NYSEARCA:GRNY) just over a year ago. In the past year, shares have gained just north of 26%, topping the performance of the S&P 500 by more than 10%. Undoubtedly, that’s a hot start to year one, but the big question is whether Tom Lee’s funds can keep up the outperformance, especially as market volatility and macro unknowns look to pick up in 2026.
Of course, it’s a very limited sample size to judge the flagship Granny Shots ETF. But thus far, there’s a comfortable lead over the S&P 500 and one that Lee is hopeful to add to in this new year. Though 2026 is just three and a half weeks in, shares of the Fundstrat Granny Shots US Large Cap ETF are already up 3.5%, ahead of the 1.8% gain posted by the broad S&P. What’s most notable about the ETF is that it’s not a tech-exclusive one. In fact, it has a good mix of growth companies spanning various notable sectors that stand to enjoy unique tailwinds.
Of course, you’re going to get more than your fair share of AI exposure with the flagship Granny Shots ETF. But, additionally, you’ll also gain exposure to some cheap non-tech names that are also capable of considerable appreciation. Whether we’re talking about large-cap industrial Caterpillar (NYSE:CAT), which fits five themes, Monster Beverage (NASDAQ:MNST), or GE Vernova (NYSE:GEV), the Granny Shots ETF is quite well diversified and might be able to take a bigger hit on the way down than ETFs fully invested in tech.
Either way, Granny Shots has been making its shots of late. And with two new additions to the roster, investors may wish to keep tabs on them as they look to post a good first full year of their own.
Fundstrat Granny Shots US Small- & Mid-Cap ETF
Fundstrat Granny Shots US Small- & Mid-Cap ETF (NYSEARCA:GRNJ) is a great pick for investors looking for Lee’s take on the small- and mid-cap universe. Undoubtedly, we’ve heard a lot about the potential behind smaller-cap companies and their more reasonable valuations of late. With lower interest rates and other tailwinds that could work in their favor, it’s definitely a wise move to think about the smaller, less-loved names on the U.S. market. The big problem is that it’s a massive ocean of small-cap names that investors will need to sift through to find potential winners.
With this Granny Shots ETF, investors can simply bet on Tom Lee as he finds easy “free throws” to make. With a modest 0.75% expense ratio, which is pretty much the going rate for a star manager, I find Granny Shots’ small- and mid-cap ETF to be a fantastic pick.
What’s underneath the hood? A diversified mix of companies, many of which are growing quite quickly. From uranium mining to gold mining to industrial up-and-comers to smaller tech winners, you’re getting a lot of interesting stuff in the basket, which could help propel the ETF to S&P-beating gains.
Year to date, the ETF is up just shy of 8%, so it’s been a hot start, but can it continue? Time will tell.
Fundstrat Granny Shots US Large Cap & Income ETF
Fundstrat Granny Shots US Large Cap & Income ETF (NYSEARCA:GRNI) is another new addition that’s hit the ground running. For investors seeking income first and capital appreciation second, it’s more than worth paying the 0.99% expense ratio. So, why the higher expense ratio relative to the other two Granny Shots ETFs? The ETF also makes use of options strategies. Not only covered calls, but also cash-secured puts.
All considered, the ETF is more labor-intensive, which justifies the added 0.24% fee. Under the hood, you’ll see many of the same holdings within the flagship Granny Shots ETF. And much of the holdings don’t really have a huge dividend yield. That’s where the options strategy comes into play.
Any way you look at it, the ETF seems to combine the best of both worlds (high-growth exposure and income). It’s a rather unique mix and one that pays a monthly distribution. Currently, the distribution rate sits at 10%. Given the rising interest in such premium income ETFs, I consider the income-focused Granny Shots ETF to be a popular one among the Tom Lee fans.