GraniteShares 1.25x Long Tsla Daily ETF (TSL)

Overview

The GraniteShares 1.25x Long TSLA Daily ETF (TSL) seeks daily investment results, before fees and expenses, of 125% of the performance of the common stock of Tesla, Inc. It is designed for short-term trading and is not suitable for long-term investors. It focuses solely on Tesla stock and aims to amplify its daily price movements.

Reputation and Reliability

GraniteShares is a provider of leveraged and inverse ETFs. While a relatively newer player, they offer specific, targeted exposures. Reputation is still developing.

Management Expertise

GraniteShares' management team possesses expertise in structured products and ETF management, specializing in providing leveraged and inverse exposure.

Goal

To seek daily investment results, before fees and expenses, that correspond to 125% of the daily performance of Tesla, Inc. stock.

Investment Approach and Strategy

Strategy: This ETF employs a leveraged strategy, aiming to deliver 1.25 times the daily return of Tesla (TSLA) stock. It is not designed to track an index but rather to amplify daily price changes.

Composition The ETF's assets primarily consist of financial instruments designed to provide leveraged exposure to Tesla's stock. This typically involves a combination of swaps and other derivative contracts.

Market Share: The market share of TSL is specific to leveraged single-stock ETFs and fluctuates based on investor interest in Tesla.

Total Net Assets (AUM): 82754931

Key Competitors

• Direxion Daily TSLA Bull 1.5X Shares (TSLL)
• AXS TSLA Bear Daily ETF (TSLQ)
• MicroSectors FANG+ Index 2X Leveraged ETN (FNGO)

Competitive Landscape

The leveraged single-stock ETF market is highly competitive, with several issuers providing amplified exposure to popular stocks. TSL's advantage lies in its specific leverage factor (1.25x), while competitors offer different multiples. The primary disadvantage is the inherent risk of leveraged products, making them unsuitable for risk-averse investors.

Historical Performance: Historical performance is highly dependent on Tesla's stock performance and the effects of compounding in a leveraged product. Due to the leveraged nature, returns can be significantly higher or lower than Tesla's stock itself, with daily resets preventing simple extrapolation of performance over longer periods.

Benchmark Comparison: A benchmark comparison is difficult due to the leveraged nature. The ETF aims to deliver 1.25x the *daily* return of Tesla, not long-term alignment.

Expense Ratio: 0.99

Average Trading Volume

The average daily trading volume indicates high liquidity for this ETF, facilitating relatively easy buying and selling for traders.

Bid-Ask Spread

The bid-ask spread is typically tight, which keeps trading costs manageable, especially considering its active trader audience.

Market Environment Factors

The ETF's performance is heavily influenced by investor sentiment towards Tesla, news flow affecting the electric vehicle market, and broader market conditions. Volatility in Tesla's stock directly impacts the ETF's amplified returns and associated risks.

Growth Trajectory

The ETF's growth trajectory is tied to the popularity of Tesla stock and the demand for leveraged trading products. Changes to strategy are unlikely given the ETF's specific mandate.

Competitive Edge

GraniteShares 1.25x Long TSLA Daily ETF (TSL) offers a unique and slightly less aggressive leverage compared to some of its competitors. This can attract investors seeking amplified returns on Tesla without the higher volatility associated with larger leverage factors. The ETF's expense ratio is competitive within the leveraged single-stock ETF space. Also, the issuer's focus on specialized and targeted exposures sets it apart. The daily reset feature also provides investors with a clearly defined risk parameter.

Volatility

The ETF exhibits extremely high volatility due to its leveraged nature and the inherent volatility of Tesla's stock. Daily resets can lead to significant erosion of capital over time, especially in choppy or sideways markets.

Market Risk

Market risk is substantial, as the ETF is concentrated in a single stock (Tesla) and amplifies its price swings. Investors face the risk of significant losses if Tesla's stock declines.

Ideal Investor Profile

The ideal investor for this ETF is a sophisticated, active trader with a high-risk tolerance and a short-term investment horizon. They should have a strong understanding of leveraged products and the risks associated with single-stock exposure.

Market Risk

This ETF is primarily suitable for active traders seeking short-term tactical exposure to Tesla. It is not appropriate for long-term investors, risk-averse individuals, or those seeking passive index tracking.

GraniteShares 1.25x Long TSLA Daily ETF (TSL) is a leveraged ETF designed for experienced, high-risk-tolerance, active traders seeking short-term amplified exposure to Tesla's daily stock performance. It offers 125% of Tesla's daily returns, which results in magnified gains and losses and makes it unsuitable for buy-and-hold investors. The ETF is highly concentrated and should be used with caution, considering the impact of compounding and daily resets. While the ETF offers opportunities for profit, investors must carefully consider their risk tolerance and trading strategy before investing.

Data Sources:

• GraniteShares official website
• ETF.com
• SEC Filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investing in leveraged ETFs involves significant risk of loss. Past performance is not indicative of future results.