GraniteShares 1.75x Long TSLA Daily ETF (TSLR)

Overview

The GraniteShares 1.75x Long TSLA Daily ETF (TSLL) seeks daily investment results, before fees and expenses, that correspond to 1.75 times (175%) the daily percentage change of the common stock of Tesla, Inc.

Reputation and Reliability

GraniteShares is a smaller ETF provider, specializing in leveraged and inverse products. Their reputation is tied to the performance and suitability of these high-risk instruments.

Management Expertise

The management team's expertise lies in structuring and managing leveraged ETFs, which requires a deep understanding of derivatives and risk management.

Goal

To provide 1.75x the daily percentage change in the price of Tesla (TSLA) stock.

Investment Approach and Strategy

Strategy: The ETF uses financial instruments such as swap agreements to achieve its leveraged exposure to TSLA.

Composition The ETF primarily holds swap agreements linked to the performance of Tesla stock. It may also hold cash or cash equivalents.

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

Total Net Assets (AUM): 137000000

Key Competitors

• Direxion Daily TSLA Bull 2X Shares (TSLL)
• AXS TSLA Bear Daily ETF (TSLQ)

Competitive Landscape

The competitive landscape is concentrated among a few providers offering leveraged and inverse exposure to Tesla. TSLL competes with other leveraged TSLA ETFs, differing primarily in the leverage multiple and expense ratio. A key advantage is brand recognition, but a disadvantage is the inherent risk of leveraged products.

Historical Performance: Historical performance is highly dependent on the daily price movements of TSLA and the leverage factor. Due to the compounding effect, long-term performance can significantly deviate from 1.75x the performance of TSLA over extended periods.

Benchmark Comparison: There is no direct benchmark as the ETF aims for 1.75x daily returns of TSLA. Comparison should be against a hypothetical portfolio with 1.75x leveraged exposure to TSLA on a daily basis.

Expense Ratio: 0.99

Average Trading Volume

The ETF generally exhibits moderate liquidity, allowing for relatively easy entry and exit for most retail investors.

Bid-Ask Spread

The bid-ask spread is typically small, reflecting the ETF's liquidity and trading activity.

Market Environment Factors

TSLL's performance is directly influenced by factors affecting Tesla's stock price, including electric vehicle demand, technological advancements, regulatory changes, and overall market sentiment.

Growth Trajectory

The ETF's growth is tied to the popularity and trading volume of Tesla stock, with potential for growth driven by increased interest in leveraged single-stock ETFs.

Competitive Edge

TSLL's advantage is its focused offering of leveraged exposure to a highly popular stock, providing traders with a tool to amplify their short-term bets on TSLA. Its competitive edge lies in the specific leverage ratio offered, catering to investors seeking a particular level of daily amplification. However, it's important to note that leveraged ETFs are high-risk and prone to significant value erosion due to compounding effects. The ETF is not suitable for long-term buy-and-hold investors, but rather for short-term tactical traders.

Volatility

The ETF exhibits very high volatility due to its leveraged nature, significantly amplifying the daily price swings of Tesla stock.

Market Risk

The ETF is subject to the market risk of Tesla stock, including company-specific risks and broader market fluctuations. Leveraged ETFs are exposed to the risk of compounding, which can result in significant losses over longer periods, even if the underlying asset performs positively.

Ideal Investor Profile

The ideal investor is a sophisticated, short-term trader with a high-risk tolerance and a deep understanding of leveraged ETFs and the risks associated with them.

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 or passive index followers.

The GraniteShares 1.75x Long TSLA Daily ETF (TSLL) offers leveraged exposure to the daily performance of Tesla stock, making it a high-risk, high-reward instrument suitable for short-term traders. It provides 1.75x the daily percentage change in TSLA's price, amplifying both gains and losses. Due to the effects of compounding, long-term performance can vary significantly from the stated leverage. This ETF requires a strong understanding of leveraged products and is not appropriate for buy-and-hold investors.

Data Sources:

• GraniteShares website
• ETF.com
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investing in leveraged ETFs involves significant risks, and investors should carefully consider their investment objectives and risk tolerance before investing.