GraniteShares 1.25x Long Tsla Daily ETF (TSL)

Overview

The GraniteShares 1.25x Long TSLA Daily ETF (TSLY) seeks daily investment results, before fees and expenses, corresponding to 1.25 times (125%) the percentage change in the price of Tesla (TSLA) stock. It is a leveraged ETF designed for short-term trading, not long-term investing. The fund focuses exclusively on a single stock, Tesla, and amplifies its daily price movements.

Reputation and Reliability

GraniteShares is a smaller ETF issuer with a focus on providing leveraged and inverse products. Their reputation is tied to the performance and risk management of these specialized ETFs.

Management Expertise

GraniteShares has experience in managing leveraged and inverse ETFs, requiring expertise in daily rebalancing and risk management to achieve the stated objectives.

Goal

The primary investment goal of TSLY is to provide 1.25 times the daily percentage change in the price of Tesla stock, before fees and expenses.

Investment Approach and Strategy

Strategy: TSLY employs a leveraged strategy to amplify the daily returns of Tesla stock. It does not track an index but rather uses financial instruments such as swaps and futures to achieve its leverage.

Composition TSLY primarily holds financial instruments (derivatives) that provide leveraged exposure to Tesla stock. It may also hold cash or cash equivalents as collateral.

Market Share: TSLY has a niche market share within the leveraged single-stock ETF space.

Total Net Assets (AUM): 147559833

Key Competitors

• Direxion Daily TSLA Bull 1.5X Shares (TSLL)
• AXS TSLA Bear Daily ETF (TSLQ)
• GraniteShares 1.75x Long TSLA Daily ETF (TSLYL)

Competitive Landscape

The competitive landscape is characterized by a few players offering leveraged and inverse exposure to Tesla. TSLY's advantage is its 1.25x leverage factor, providing a moderate level of amplification. However, its competitors offer higher leverage, which can attract more aggressive traders. Due to daily reset, the effects of compounding could have the ETF perform very differently than its index or benchmark.

Historical Performance: Historical performance data needs to be extracted from financial data providers (Yahoo Finance, Google Finance, etc.) as it fluctuates with the market. Refer to the official fund documentation for specific historical returns.

Benchmark Comparison: TSLY does not track a traditional benchmark index. Its performance should be compared to 1.25 times the daily percentage change of Tesla stock. However, due to compounding, the results will likely differ substantially over longer periods.

Expense Ratio: 0.99

Average Trading Volume

TSLY's average trading volume is moderately high, indicating relatively good liquidity, but can vary significantly based on market interest in Tesla.

Bid-Ask Spread

The bid-ask spread for TSLY can fluctuate based on market conditions and trading volume but is generally wider than more liquid ETFs, reflecting the risks involved.

Market Environment Factors

TSLY's performance is heavily influenced by investor sentiment towards Tesla, overall market volatility, and interest rate changes. High growth prospects and positive news surrounding Tesla tend to boost its price.

Growth Trajectory

TSLY's growth trajectory is directly tied to the demand for leveraged exposure to Tesla. Changes in Tesla's market capitalization and volatility will significantly impact the ETF's trading volume and AUM. It is sensitive to the electric vehicle sector trends and any strategic shifts from TSLA.

Competitive Edge

TSLY offers a specific level of leveraged exposure (1.25x) to Tesla, appealing to traders seeking amplified daily returns. Its competitive edge lies in providing a readily accessible instrument for short-term speculation on Tesla's price movements. The ETF's low barrier to entry allows investors to quickly adjust their positions based on their view of Tesla's near-term prospects. However, the leveraged nature also means it is unsuitable for long-term investors.

Volatility

TSLY exhibits significantly higher volatility than Tesla stock due to its leveraged structure. This amplified volatility can lead to substantial gains or losses in a short period.

Market Risk

TSLY is highly susceptible to market risk associated with Tesla stock, including company-specific risks, industry risks, and overall market fluctuations. The leveraged nature exacerbates these risks, potentially leading to rapid and significant losses. Compounding risks also result in performance divergence from the intended 1.25x return over longer periods.

Ideal Investor Profile

The ideal investor for TSLY is an experienced trader with a high-risk tolerance, a deep understanding of leveraged ETFs, and a short-term investment horizon. Investors should be active and monitor their positions frequently.

Market Risk

TSLY is best suited for active traders seeking to capitalize on short-term fluctuations in Tesla stock. It is not suitable for long-term investors or those with a low-risk tolerance due to the high volatility and potential for significant losses.

GraniteShares 1.25x Long TSLA Daily ETF (TSLY) is a leveraged ETF designed to provide 1.25 times the daily percentage change in Tesla stock. It is suitable for short-term trading strategies rather than long-term investment. The ETF's performance is highly volatile and carries significant risks due to its leveraged nature. Investors should carefully consider their risk tolerance and investment horizon before investing in TSLY.

Data Sources:

• GraniteShares Official Website
• SEC Filings
• Yahoo Finance
• Google Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investing in leveraged ETFs involves significant risks, and investors may lose their entire investment. Consult with a qualified financial advisor before making any investment decisions.