AXS TSLA Bear Daily ETF (TSLQ)

Overview

The AXS TSLA Bear Daily ETF (TSLQ) seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of Tesla (TSLA) stock. It aims to profit when TSLA's stock price declines, providing a leveraged short exposure for one day only. Its asset allocation is primarily derivatives designed to achieve the inverse daily performance.

Reputation and Reliability

AXS Investments is a relatively newer player in the ETF market, focusing on alternative and leveraged strategies. Their reputation is building, but they have a shorter track record compared to larger, established issuers.

Management Expertise

AXS Investments has a team with experience in managing complex investment products, including leveraged and inverse ETFs. Their expertise lies in structuring and managing these types of funds to meet their stated objectives.

Goal

To provide daily investment results (before fees and expenses) that correspond to the inverse (-1x) of the daily performance of Tesla (TSLA) stock.

Investment Approach and Strategy

Strategy: The ETF uses a leveraged inverse strategy, employing derivatives to achieve the opposite of Tesla's daily returns. It's designed for short-term trading and is not suitable for holding over multiple days.

Composition The ETF primarily holds financial derivatives such as swap agreements and futures contracts that are designed to mimic the inverse of Tesla's daily performance.

Market Share: TSLQ's market share is significant within the niche of inverse single-stock ETFs focused on Tesla.

Total Net Assets (AUM): 65745387

Key Competitors

• GraniteShares 1.25x Short TSLA Daily ETF (TSLI)

Competitive Landscape

The competitive landscape is relatively concentrated, with few ETFs offering leveraged or inverse exposure to single stocks like Tesla. TSLQ offers -1x leverage, differing from competitors that offer different leverage factors. The advantages of TSLQ is its specific -1x leverage, which can align well with some investors' strategies. A disadvantage is its concentration risk and the decay associated with leveraged ETFs.

Historical Performance: Historical performance is highly dependent on the daily price movements of Tesla (TSLA). Performance data varies significantly and should be considered with the understanding that the ETF is designed for short-term use only.

Benchmark Comparison: There is no direct benchmark index for an inverse single-stock ETF. Performance is measured relative to the inverse daily return of TSLA stock.

Expense Ratio: 1.15

Average Trading Volume

The ETF demonstrates good liquidity, with a robust average daily trading volume.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting healthy trading activity.

Market Environment Factors

Tesla's stock price is heavily influenced by factors such as electric vehicle demand, technological advancements, regulatory changes, and overall market sentiment. These factors directly impact TSLQ's performance.

Growth Trajectory

TSLQ's growth trajectory is entirely dependent on investor demand for inverse Tesla exposure. There are no strategic changes anticipated as the ETF aims to provide a consistent inverse daily performance.

Competitive Edge

TSLQ's competitive advantage lies in its simplicity and direct focus on providing inverse exposure to Tesla's daily price movements. It allows investors to easily express a short-term bearish view on Tesla. The focused approach distinguishes it from broader market inverse funds. However, the leveraged daily reset and potential tracking error create difficulties to keep the value over longer holding periods. The single-stock focus adds to the risk and volatility.

Volatility

The ETF exhibits high volatility due to the leveraged nature of the fund and the inherent volatility of Tesla stock.

Market Risk

The primary market risk is related to Tesla's stock price movements. The ETF is also subject to risks associated with leveraged and inverse ETFs, including compounding risk and the potential for significant losses.

Ideal Investor Profile

Ideal investors are experienced traders with a short-term outlook who understand the risks associated with leveraged and inverse ETFs and have a bearish outlook on Tesla's stock.

Market Risk

The ETF is best suited for active traders seeking short-term tactical exposure to Tesla and is not appropriate for long-term investors.

The AXS TSLA Bear Daily ETF (TSLQ) offers a leveraged inverse exposure to the daily performance of Tesla (TSLA) stock. Designed for sophisticated and active traders, it's a short-term tactical instrument. Its high volatility and leveraged structure make it unsuitable for long-term holding. Investors should be aware of the decay effect and compounding risks that arise from daily resetting nature of the fund, along with the single stock concentration. Its success is highly dependent on correctly anticipating Tesla's daily price movements.

Data Sources:

• AXS Investments Website
• ETF.com
• Bloomberg
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with a qualified financial advisor and conducting thorough due diligence. Past performance is not indicative of future results. Leveraged and inverse ETFs are inherently risky and may not be suitable for all investors.