GraniteShares 1.25x Long Tsla Daily ETF (TSL)

Overview

The GraniteShares 1.25x Long TSLA Daily ETF (TSLA) is a leveraged exchange-traded fund designed to provide investors with 1.25 times the daily return of Tesla, Inc. (TSLA) stock. It aims to offer amplified exposure to the price movements of Tesla, making it suitable for short-term directional bets.

Reputation and Reliability

GraniteShares is a relatively newer player in the ETF market, but it has established a reputation for offering niche, often leveraged or inverse, products. Its reliability is generally considered standard for a modern ETF issuer, though its product suite is focused on specific trading strategies.

Management Expertise

Information on the specific management team for individual GraniteShares ETFs is typically not detailed publicly in the same way as traditional asset managers. The expertise lies in the structured design of the leveraged products and the ability to track daily performance.

Goal

To provide investors with 1.25 times the daily return of Tesla, Inc. stock. This is achieved through the use of financial derivatives and swaps.

Investment Approach and Strategy

Strategy: The ETF aims to achieve its objective by investing in a portfolio of derivative instruments, including swaps, that provide daily leveraged exposure to Tesla's stock performance. It is not designed to track an index but to replicate a specific multiple of a single stock's daily movement.

Composition The ETF's holdings are primarily composed of derivative contracts, such as total return swaps, designed to mirror the 1.25x leveraged daily performance of Tesla stock. It does not hold direct shares of Tesla in significant amounts.

Market Share: Market share data for highly specialized leveraged ETFs like TSLA is difficult to quantify in the same way as broad market ETFs. Its market share is inherently tied to the trading volume and interest in leveraged Tesla bets.

Total Net Assets (AUM): 116373116

Key Competitors

• Direxion Daily TSLA Bull 2X Shares (TSL)

Competitive Landscape

The competitive landscape for leveraged Tesla ETFs is relatively small, primarily consisting of other leveraged products from issuers like Direxion. GraniteShares' TSLA offers a less aggressive 1.25x leverage compared to the more common 2x leveraged products, potentially appealing to a slightly more risk-averse (within the leveraged ETF spectrum) investor. The primary advantage is its specific leverage factor, while disadvantages include the inherent risks of leveraged investing and the potential for tracking errors over longer periods.

Historical Performance: Historical performance data for leveraged ETFs like TSLA can be highly volatile and is best viewed over very short, daily or weekly periods. Long-term performance is often negatively impacted by compounding effects and volatility decay. Specific daily, weekly, monthly, and yearly percentage changes are not statically provided here but would be subject to Tesla's stock price movements amplified by 1.25x, adjusted for fees and the daily rebalancing.

Benchmark Comparison: This ETF does not have a traditional benchmark index in the same way as passive ETFs. Its performance is directly tied to the daily price movement of Tesla stock, multiplied by 1.25.

Expense Ratio: 0.99

Average Trading Volume

The average trading volume for the GraniteShares 1.25x Long Tsla Daily ETF is robust, indicating good liquidity for active traders.

Bid-Ask Spread

The bid-ask spread for the GraniteShares 1.25x Long Tsla Daily ETF is generally tight, reflecting efficient market making and low transaction costs for traders.

Market Environment Factors

The performance of TSLA is heavily influenced by the volatility of Tesla's stock, which is in turn affected by its financial performance, production numbers, Elon Musk's activities, regulatory news, and broader market sentiment towards growth stocks and the electric vehicle sector.

Growth Trajectory

As a leveraged product, the 'growth' of TSLA is not about increasing assets under management through inflows but about its ability to deliver amplified daily returns on Tesla's stock. Its strategy and holdings remain consistent, focused on daily rebalancing of derivative positions.

Competitive Edge

GraniteShares 1.25x Long Tsla Daily ETF's primary competitive edge lies in its specific 1.25x leverage factor, offering an alternative to the more common 2x leveraged products. This caters to a niche within active traders seeking amplified Tesla exposure with a slightly moderated, though still significant, leveraged effect. Its focus on a single, highly-watched stock allows for precise alignment with investor sentiment towards Tesla.

Volatility

The ETF exhibits extremely high volatility due to its leveraged nature and its underlying asset being Tesla, a notoriously volatile stock. Daily price swings can be substantial.

Market Risk

The primary market risks for TSLA are the significant price volatility of Tesla stock, the inherent risks of leveraged investment (including potential for rapid and substantial losses), and the impact of daily rebalancing which can lead to tracking differences and volatility decay over time.

Ideal Investor Profile

The ideal investor for this ETF is an experienced trader with a high-risk tolerance who has a strong conviction on the short-term direction of Tesla's stock price. They should understand the intricacies and risks of leveraged and inverse ETFs.

Market Risk

This ETF is best suited for very active traders seeking to capitalize on short-term price movements in Tesla. It is not appropriate for long-term investors due to the compounding effects of leverage and volatility decay.

The GraniteShares 1.25x Long Tsla Daily ETF (TSLA) offers amplified daily exposure to Tesla's stock with a 1.25x multiplier. It is a highly specialized, high-risk product designed for short-term trading. Its key advantage is its specific leverage, but investors must be aware of its extreme volatility and suitability only for experienced traders.

Data Sources:

• GraniteShares Official Website
• Financial Data Providers (e.g., Bloomberg, Refinitiv, Yahoo Finance)

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. Leveraged and inverse ETFs carry significant risks and are not 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.