Fundstrat Capital Announces February 2026 Rebalance for Granny Shots Small- & Mid-Cap ETF (NYSE: GRNJ)
MWN-AI** Summary
Fundstrat Capital has announced the completion of the February 2026 quarterly rebalance for its Granny Shots US Small- & Mid-Cap ETF (NYSE: GRNJ), which is now one of the largest actively managed ETFs in its category with over $384 million in assets under management. The firm, led by Chief Investment Officer Thomas "Tom" Lee, emphasizes adapting their portfolio to evolving market conditions, enabling a strategic response to macroeconomic trends, monetary policy shifts, and other structural challenges.
For this rebalance, Fundstrat performed an extensive analysis resulting in the addition of 18 new securities and the removal of 11. Highlights of the additions include companies such as Array Technologies (ARRY), Domino's Pizza (DPZ), and Hyatt Hotels (H), while removed stocks include Acuity Brands (AYI) and Roblox (RBLX). This adjustment aligns with their investment framework, which utilizes both top-down macroeconomic research and bottom-up quantitative screening to select stocks geared for multiple potential growth drivers.
Lee noted that despite facing a challenging macro backdrop in 2026, they foresee a generally positive year for equities. The rebalance reflects a strong focus on cyclical and value-oriented stocks, underpinned by Fundstrat's seven thematic areas: Style Tilt, Seasonality, PMI Recovery, Millennials, Global Labor Supply, Energy & Cybersecurity, and Easing Financial Conditions.
As GRNJ continues to grow, attributed to investor demand for thematic and strategic small- and mid-cap opportunities, Fundstrat Capital’s commitment to rigorous research positions the ETF as a viable option for investors looking to diversify their portfolios within this sector. For further details, investors can check out Fundstrat's latest updates on their website.
MWN-AI** Analysis
Fundstrat Capital's recent announcement regarding the February 2026 rebalance of the Granny Shots Small- & Mid-Cap ETF (NYSE: GRNJ) highlights a strategic shift aimed at navigating evolving market conditions. With over $384 million in assets under management, GRNJ has emerged as a rapidly growing product among actively managed ETFs, reflecting increased investor appetite for thematic investment approaches.
The latest rebalancing introduced 18 new securities while removing 11 from the portfolio, indicating a proactive stance influenced by macroeconomic, quantitative, and fundamental analyses. Notably, the focus on high-quality cyclical and value stocks suggests an expectation for a stabilization in the economic environment, potentially bolstered by easing financial conditions.
Investors considering GRNJ should pay close attention to the fund's dual-signaling methodology, which integrates top-down macroeconomic research with bottom-up quantitative screening. The outlined seven investment themes—ranging from seasonality to long-term trends such as Millennials and cybersecurity—are positioned to capitalize on both immediate and structural growth opportunities.
In a challenging macro backdrop, the ETF's emphasis on improving economic conditions aligns with a larger investment trend favoring mid-cap stocks, which often exhibit superior growth potential compared to their larger counterparts. The removal of weaker-performing stocks signals a commitment to maintaining a robust portfolio likely to thrive as market dynamics shift.
For those looking to diversify their portfolios with exposure to emerging small- and mid-cap opportunities, GRNJ offers a strategically calibrated entry point. Given the ETF's rapid growth and the tactical adjustments underway, investors may find this actively managed fund an appealing addition, particularly as the market outlook becomes increasingly favorable. However, potential investors should remain cognizant of the inherent risks associated with small- and mid-cap stocks, which can be more volatile and sensitive to broader market shifts.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Fundstrat Capital Announces February 2026 Rebalance for Granny Shots Small- & Mid-Cap ETF (NYSE: GRNJ)
PR Newswire
GRNJ ranks among the fastest-growing actively managed small- and mid-cap equity ETF launches with more than $384 million in AUM1
NEW YORK, Feb. 25, 2026 /PRNewswire/ -- Fundstrat Capital, the investment management firm led by Chief Investment Officer Thomas "Tom" Lee, announced the completion of the February 2026 quarterly rebalance for the Fundstrat Granny Shots US Small- & Mid-Cap ETF (NYSE: GRNJ). With more than $384 million in assets under management, as of Feb. 23, 2026, GRNJ ranks among the fastest-growing actively managed small- and mid-cap equity ETF launches.
The rebalance reflects updated positioning across Fundstrat's proprietary Granny Shots investment framework, which identifies small- and mid-cap equities they believe are positioned to benefit from multiple structural themes spanning macroeconomic trends, monetary policy, demographics, behavioral shifts, and technology adoption.
"We are executing this rebalance to dynamically adapt Granny Shots to changing market conditions, style and seasonality regime shifts, and also fundamental changes. This allows us to best position our portfolio to perform in the months and years ahead," said Thomas "Tom" Lee, Chief Investment Officer of Fundstrat Capital. "For this particular rebalance, our macro, quantitative and fundamental analysis resulted in a sizable number of changes, with 18 additions and 11 deletions. Our evidence-based research suggests that the 2026 macro backdrop points to a challenging but ultimately positive year for equities. Hence, our portfolio is focused on quality cyclical and value quality."
For a full overview of the February 2026 rebalance, watch Tom Lee's latest Fundstrat Capital weekly update video HERE or visit grannyshots.com.
The Granny Shots investment strategy combines Fundstrat's top-down macroeconomic research with bottom-up quantitative screening. To qualify for the portfolio, a security must appear in at least two of Fundstrat's seven fundamental investment themes, targeting positions supported by multiple potential tailwinds.
The seven themes driving the February 2026 selection include three shorter-term themes: Style Tilt, Seasonality, and PMI Recovery, alongside four longer-term themes: Millennials, Global Labor Supply, Energy & Cybersecurity, and Easing Financial Conditions.
February 2026 Rebalance Summary
Following the quarterly rebalance, the updated holdings for GRNJ are as follows:
- Additions: ARRY (Array Technologies), CARR (Carrier Global), CRS (Carpenter Technology), CW (Curtiss-Wright), DINO (HF Sinclair), DPZ (Domino's Pizza), DTM (DT Midstream), ELF (e.l.f. Beauty), EXEL (Exelixis), FN (Fabrinet), H (Hyatt Hotels), HALO (Halozyme Therapeutics), HII (Huntington Ingalls Industries), LSCC (Lattice Semiconductor), SATS (EchoStar), UHS (Universal Health Services), UUUU (Energy Fuels), VMI (Valmont Industries).
- Removals: AYI (Acuity Brands), EME (EMCOR Group), HIMS (Hims & Hers Health), IOT (Samsara), JOBY (Joby Aviation), MTZ (MasTec), NEU (NewMarket Corporation), PEGA (Pegasystems), QLYS (Qualys), RBLX (Roblox), TWLO (Twilio).
Why Investors Are Allocating to the Granny Shots Small- & Mid-Cap Strategy
Since its inception, GRNJ has reached more than $384 million in assets under management, as of Feb. 23, 2026, making it one of the fastest-growing actively managed small- and mid-cap equity ETF launches. The fund's rapid growth reflects investor demand for applying Fundstrat's thematic research framework beyond large cap equities, bringing the same systematic, actively managed approach to the broader opportunity set within small- and mid-cap equities.
The Granny Shots ETF suite, including Fundstrat Granny Shots US Large Cap ETF (NYSE: GRNY), Fundstrat Granny Shots US Large Cap & Income (NYSE: GRNI), and Fundstrat Granny Shots US Small- & Mid-Cap ETF (NYSE: GRNJ), provides investors with a research-driven toolkit across market capitalizations and income preferences.
GRNY has surpassed $4 billion in AUM since its November 2024 inception, ranking among the fastest-growing actively managed large-cap equity ETF launches in history.²
To learn more about the Granny Shots strategy and the full suite of ETFs, visit grannyshots.com.
Frequently Asked Questions
What is the Granny Shots Small- & Mid-Cap ETF (GRNJ)?
The Fundstrat Granny Shots US Small- & Mid-Cap ETF (NYSE: GRNJ) is an actively managed exchange-traded fund that uses Fundstrat's proprietary thematic investment framework to identify small- and mid-cap U.S. equities positioned at the intersection of multiple macroeconomic and fundamental tailwinds.
How does the Granny Shots strategy select stocks?
A security must appear in at least two of Fundstrat's seven investment themes to qualify for the portfolio. This dual signal methodology combines top-down macro research with bottom-up quantitative screening. The portfolio is equally weighted and rebalanced quarterly.
How does GRNJ differ from GRNY?
GRNY focuses on large-cap U.S. equities. GRNJ applies the same Granny Shots thematic framework to the small- and mid-cap universe, offering investors exposure to a broader set of growth opportunities driven by the same macroeconomic and fundamental research.
What is the total AUM of Fundstrat Capital?
As of Feb. 23, 2026, Fundstrat Capital manages over $ 4.5 billion in assets under management across the Granny Shots ETF suite.
1 Source: Morningstar and FactSet as of January 9, 2026; data includes all active and passive managed U.S. small- and mid-cap equity ETFs.
2 Source: Morningstar and FactSet as of Jan. 9, 2026; data includes all actively managed U.S. large-cap equity ETFs.
About Fundstrat Capital
Fundstrat Capital is an investment management firm led by Chief Investment Officer Thomas "Tom" Lee, specializing in thematic, research-driven equity strategies. The firm applies in-depth macroeconomic, industry, and market trend analysis to develop actively managed investment solutions for a broad range of investors. Tom Lee is widely recognized for his market research, macro commentary, and pioneering work in thematic investing across equities and digital assets.
To learn more, visit fundstratcapital.com.
GRNY Holdings and Performance: grannyshots.com/grny
GRNJ Holdings and Performance: grannyshots.com/grnj
GRNI Holdings and Performance: grannyshots.com/grni
Follow Fundstrat Capital
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Subscribe for Updates
To receive weekly market updates and commentary from Thomas "Tom" Lee and Fundstrat Capital, visit grannyshots.com/sign-up.
Media Inquiries
Email: inquiry@fundstratcapital.com
Disclosures
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns.
BEFORE INVESTING, YOU SHOULD CAREFULLY CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES. THIS AND OTHER INFORMATION IS CONTAINED IN THE PROSPECTUS, WHICH CAN BE ACCESSED AT GRANNYSHOTS.COM/FUND-DOCUMENTS/ OR BY CALLING (212) 293-7132. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
Investing involves risk. Principal loss is possible.
The principal risks of investing in the Fund are summarized below. As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund.
Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers.
Models and Data Risk. The composition of the Fund's portfolio is heavily dependent on investment models developed by the Sub-Adviser as well as information and data supplied by third parties ("Models and Data"). When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities from the Fund's portfolio that would have been excluded or included had the Models and Data been correct and complete.
Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors of the Fund's service providers, counter parties or other third-parties, failed or inadequate processes and technology or systems failures.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Mid-Capitalization Investing. The securities of mid-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large-capitalization companies. The securities of mid-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than large-capitalization stocks or the stock market as a whole.
Small-Capitalization Investing. Small-cap companies may be less stable and more susceptible to market changes, with their securities being more volatile and less liquid.
Distributed by Foreside Fund Services, LLC. Foreside is not related to Tidal or Fundstrat.
SOURCE Fundstrat Capital
FAQ**
What specific structural themes did Fundstrat Capital identify for the Fundstrat Granny Shots US Small & Mid-Cap ETF (GRNJ) during the February 2026 rebalance?
How does the selection process for the Fundstrat Granny Shots US Small & Mid-Cap ETF (GRNJ) ensure that only stocks aligned with the seven identified investment themes are included?
What were the primary factors that led to the addition of 18 new securities and the removal of 11 from the Fundstrat Granny Shots US Small & Mid-Cap ETF (GRNJ) in the February 2026 rebalance?
In what ways does the performance outlook for the equities within the Fundstrat Granny Shots US Small & Mid-Cap ETF (GRNJ) differ from the previous quarters, particularly in light of the macroeconomic analysis?
**MWN-AI FAQ is based on asking OpenAI questions about Fundstrat Granny Shots US Small & Mid-Cap ETF (NYSE: GRNJ).
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