GraniteShares 1.5x Short TSLA Daily ETF (TSDD)

Overview

The GraniteShares 1.5x Short TSLA Daily ETF (TSLS) is designed to provide investors with leveraged inverse exposure to the daily performance of Tesla Inc. (TSLA). It aims to deliver 1.5 times the inverse daily return of Tesla's stock. The ETF is suitable for sophisticated investors who understand the risks associated with leveraged and inverse ETFs and have a short-term outlook on Tesla's stock performance.

Reputation and Reliability

GraniteShares is a relatively newer entrant in the ETF space, founded in 2016. While it has grown its AUM and product offerings, it may not have the extensive track record of some of the larger, more established ETF issuers. Investors should consider the issuer's operational capabilities and financial stability.

Management Expertise

Information on the specific management team for TSLS is not readily available to the public in detail. Like many leveraged and inverse ETFs, the management strategy often relies on complex financial derivatives and sophisticated algorithms to achieve the daily leveraged inverse performance objective.

Goal

The primary investment objective of the GraniteShares 1.5x Short TSLA Daily ETF is to provide investors with 1.5 times the inverse daily performance of Tesla Inc. (TSLA). It is not intended for long-term buy-and-hold investment strategies.

Investment Approach and Strategy

Strategy: TSLS does not track a specific index. Instead, its strategy is to use financial derivatives, such as swaps and futures contracts, to achieve its objective of delivering 1.5 times the inverse daily return of Tesla's stock.

Composition The ETF's holdings are primarily comprised of derivative instruments designed to replicate the leveraged inverse daily performance of Tesla. It does not hold a significant amount of Tesla shares directly. The exact composition of these derivatives can change daily based on the fund's rebalancing strategy.

Market Share: Market share data for highly specialized leveraged inverse ETFs like TSLS is difficult to quantify in the same way as broad market ETFs. Its market position is defined by its niche focus on providing leveraged short exposure to a single, highly volatile stock.

Total Net Assets (AUM): The Total Net Assets (AUM) for TSLS can fluctuate significantly due to its leveraged nature and the volatility of its underlying asset. Specific real-time AUM data should be obtained from financial data providers.

Key Competitors

• ProShares UltraShort TSLA ETF (TDD)
• Direxion Daily TSLA Bear 1.5X Shares (HIRO)

Competitive Landscape

The competitive landscape for leveraged inverse ETFs targeting a single stock like Tesla is characterized by a few specialized providers. TSLS competes with other ETFs offering similar leveraged inverse exposure to TSLA. Its advantages lie in its specific 1.5x leverage, which might appeal to traders looking for a moderate level of magnification. Disadvantages include the inherent risks of leveraged and inverse ETFs, including daily rebalancing, potential for significant losses, and decay of value over time, which are common to all such products.

Historical Performance: Historical performance data for leveraged inverse ETFs is highly volatile and should be interpreted with extreme caution. Past performance is not indicative of future results. Daily returns are compounded, meaning that over periods longer than one day, the ETF's performance can significantly deviate from 1.5 times the inverse performance of Tesla. Specific historical return data (e.g., 1-day, 1-week, 1-month, 1-year) would need to be sourced from a financial data provider.

Benchmark Comparison: TSLS does not have a specific benchmark index in the traditional sense. Its performance is measured against its objective: 1.5 times the inverse daily return of Tesla. Comparing it to a broad market index would be inappropriate.

Expense Ratio: 1.17

Average Trading Volume

The average trading volume for TSLS can vary significantly, reflecting the active trading nature of leveraged inverse ETFs and investor sentiment towards Tesla.

Bid-Ask Spread

The bid-ask spread for TSLS is a key indicator of its trading cost and liquidity; tighter spreads suggest better liquidity and lower trading costs.

Market Environment Factors

Market conditions for TSLS are heavily influenced by the price movements of Tesla Inc. (TSLA) stock, overall market sentiment towards growth stocks, automotive industry trends, technological advancements in electric vehicles, and macroeconomic factors such as interest rates and inflation. The stock's inherent volatility is a primary driver.

Growth Trajectory

The growth trajectory of TSLS is directly tied to the trading strategies and short-term outlook of investors regarding Tesla. As a leveraged inverse product, its AUM and trading activity are expected to be volatile, reflecting its speculative nature. Strategy adjustments are typically minimal as the objective is fixed.

Competitive Edge

GraniteShares 1.5x Short TSLA Daily ETF's competitive edge lies in its specific offering of 1.5x leveraged inverse exposure to Tesla, catering to a precise trading niche. Its advantage is in its focused, tactical nature for short-term bearish bets on a highly prominent stock, appealing to traders seeking controlled magnification of their inverse views.

Volatility

TSLS is inherently highly volatile due to its 1.5x leveraged inverse objective and its underlying asset, Tesla, which is also known for its significant price swings. Daily rebalancing further contributes to this volatility.

Market Risk

The primary market risk associated with TSLS is the unpredictable and often rapid upward movement of Tesla's stock price, which would result in substantial losses for inverse investors. Furthermore, the compounding effect of daily returns can lead to significant divergence from expected long-term inverse performance.

Ideal Investor Profile

The ideal investor for TSLS is a sophisticated trader with a strong understanding of leveraged and inverse ETFs, who has a short-term bearish outlook on Tesla and is willing to accept significant risk. They must be actively monitoring the market and prepared to exit their position quickly.

Market Risk

TSLS is best suited for active traders seeking short-term opportunities to profit from a decline in Tesla's stock price. It is not suitable for long-term investors or those seeking stable, diversified investment exposure.

The GraniteShares 1.5x Short TSLA Daily ETF (TSLS) provides leveraged inverse exposure to Tesla's daily performance, aiming for 1.5 times the inverse return. It is a highly specialized instrument designed for active traders with short-term bearish views on TSLA. Due to its leveraged and inverse nature, TSLS carries substantial risk and is not recommended for long-term investment. Its performance is highly volatile and can deviate significantly from expected returns over longer periods.

Data Sources:

• GraniteShares Official Website (for expense ratio and general product information)
• Financial data providers (for AUM, trading volume, historical performance - actual data would be sourced in real-time)
• General ETF industry knowledge regarding leveraged and inverse ETF structures.

Disclaimers:

This information is for educational purposes only and does not constitute financial advice. Investing in leveraged and inverse ETFs is highly risky and may not be suitable for all investors. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Specific data points like AUM, trading volume, and historical performance are subject to change and require real-time sourcing.