Why GRNY Stands Out as the Only Actively Managed ETF Worth Owning in 2025

In an era where active management has long been dismissed as a losing proposition, the Fundstrat Granny Shots US Large Cap ETF (GRNY) has emerged as a rare exception. As of September 2025, GRNY has delivered an 18% year-to-date return, outperforming both the S&P 500 and the Nasdaq-100 tracker QQQ by a wide margin GRNY ETF Forecast – NYSEARCA:GRNY Beats QQQ & IWF ...^[3]. This performance, achieved in a low-growth macro environment, underscores GRNY's unique ability to generate alpha while navigating the challenges of a market starved of traditional growth drivers.

Strategic Alpha Generation in a Low-Growth World

GRNY's success stems from its proprietary “Granny Shot” philosophy, which prioritizes companies with consistent financial performance and shareholder returns—often overlooked “safe” or “bland” stocks that deliver quarter-after-quarter results Tom Lee's New ETF Hits $2B AUM, Beats S&P 500 by 9% ...^[2]. This approach has historically outperformed the S&P 500 by over 4,260 basis points since inception, with a 34.1% YTD return compared to the index's 9.4% GRNY ETF Forecast – NYSEARCA:GRNY Beats QQQ & IWF ...^[3]. By focusing on 35–40 high-quality S&P 500 stocks aligned with both short-term tactical and long-term thematic economic drivers, GRNY capitalizes on secular trends such as AI adoption, energy transition, and healthcare innovation GRNY Stock Quote | Price Chart | Volume Chart (Fundstrat ...^[1].

In a low-growth environment, where traditional momentum and speculative bets falter, GRNY's emphasis on durable earnings and macroeconomic alignment becomes a critical advantage. For instance, as of July 2025, the ETF outperformed the S&P 500 by 907 basis points, a feat attributed to its active management and transparent communication strategy Tom Lee's New ETF Hits $2B AUM, Beats S&P 500 by 9% ...^[2]. This is not mere luck; it reflects a disciplined process of identifying undervalued large-cap stocks that benefit from structural shifts rather than cyclical volatility.

Risk-Adjusted Returns and the Absence of a Sharpe Ratio

Critics may point to the lack of a Sharpe ratio for GRNY, as the fund has not yet accumulated 12 months of trading data GRNY Stock Quote | Price Chart | Volume Chart (Fundstrat ...^[5]. However, this limitation does not negate its risk-adjusted appeal. GRNY's 0.93 correlation to the SPY ETF suggests it shares similar market sensitivity, but its active management layer introduces a buffer against downside risks GRNY Stock Quote | Price Chart | Volume Chart (Fundstrat ...^[1]. For example, by September 2025, GRNY's 18% YTD return—despite a 0.75% expense ratio—demonstrates its capacity to generate alpha even in a constrained environment Tom Lee's New ETF Hits $2B AUM, Beats S&P 500 by 9% ...^[2].

Alternative risk-adjusted frameworks, such as evaluating alpha generation relative to benchmarks and assessing exposure to long-term macro themes, provide a more holistic view. GRNY's outperformance of IWF (iShares Russell 1000 Growth ETF) and its thematic focus on high-quality, cash-flow-positive companies suggest it is engineered to thrive in a world where growth is elusive GRNY ETF Forecast – NYSEARCA:GRNY Beats QQQ & IWF ...^[3].

A Case for Active Management in 2025

The broader market's skepticism toward active management has created a vacuum that GRNY is uniquely positioned to fill. While passive strategies struggle to adapt to shifting macro dynamics, GRNY's blend of top-down and bottom-up analysis allows it to pivot swiftly. For instance, its outperformance of the S&P 500 by 907 basis points in 2025 highlights its ability to exploit market inefficiencies Tom Lee's New ETF Hits $2B AUM, Beats S&P 500 by 9% ...^[2].

Moreover, GRNY's expense ratio of 0.75% is competitive with many active funds, making its performance even more compelling GRNY Stock Quote | Price Chart | Volume Chart (Fundstrat ...^[1]. In a landscape where investors are increasingly wary of high fees and underwhelming returns, GRNY offers a rare combination of cost efficiency and alpha generation.

Conclusion

GRNY's standout performance in 2025 is not an anomaly but a reflection of its strategic design. By combining the “Granny Shot” philosophy with active management and macroeconomic foresight, the ETF has carved out a niche in a low-growth world. While the absence of a Sharpe ratio remains a caveat, its track record of outperformance, thematic focus, and risk management practices make it a compelling case for investors seeking alpha in an uncertain environment. As the market continues to grapple with structural headwinds, GRNY's approach offers a blueprint for navigating the challenges of 2025 and beyond.