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, of 175% of the performance of the common stock of Tesla, Inc. (TSLA). It is a leveraged ETF designed for short-term trading and is not suitable for long-term investors. The fund focuses solely on Tesla and employs a strategy of magnifying daily returns.

Reputation and Reliability

GraniteShares is a relatively smaller ETF provider, but it specializes in providing leveraged and inverse ETFs, which are inherently risky but have their niche.

Management Expertise

GraniteShares has expertise in structuring and managing leveraged and inverse ETFs, understanding the complexities of daily rebalancing and magnified exposure.

Goal

To provide 175% of the daily performance of Tesla (TSLA) stock, before fees and expenses.

Investment Approach and Strategy

Strategy: The ETF uses financial instruments like swap agreements to achieve its leveraged return. Daily rebalancing is critical to maintain the 1.75x leverage.

Composition The ETF's holdings primarily consist of swap agreements and other financial instruments designed to provide leveraged exposure to TSLA. It essentially holds derivatives to amplify TSLA's performance.

Market Share: TSLL holds a small market share within the leveraged single-stock ETF segment, as this is a niche market.

Total Net Assets (AUM): 47.58

Key Competitors

• Direxion Daily TSLA Bull 1.5X Shares (TSLA)
• AXS TSLA Bear Daily ETF (TSLQ)
• GraniteShares 1.25x Long TSLA Daily ETF (TSLY)

Competitive Landscape

The competitive landscape in single-stock leveraged ETFs is defined by a few key players offering different leverage ratios and strategies (bullish vs. bearish). TSLL's 1.75x leverage offers a higher potential return, but also higher risk, compared to TSLA. TSLL is directly competing with TSLA as both are leveraged versions of Tesla stock.

Historical Performance: Due to the leveraged nature and daily rebalancing, past performance is not indicative of future returns. Performance will vary greatly with TSLA's daily price fluctuations.

Benchmark Comparison: The ETF's performance is compared to 1.75x the daily performance of TSLA. Tracking error can occur due to fees, expenses, and rebalancing.

Expense Ratio: 1.2

Average Trading Volume

TSLL exhibits a moderate average trading volume, implying it has liquidity to manage relatively large buy and sell orders.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and TSLA's volatility, leading to varying transaction costs.

Market Environment Factors

TSLL's performance is heavily influenced by Tesla's stock performance, overall market sentiment towards growth stocks, and economic conditions. The demand for leveraged products also affects the ETF.

Growth Trajectory

TSLL's growth is tied to the popularity of leveraged ETFs and investor sentiment toward Tesla. Changes in TSLA's trading volume and price volatility will directly impact TSLL.

Competitive Edge

TSLL's main advantage is its 1.75x leveraged exposure to Tesla, appealing to traders seeking amplified daily gains. Its focused strategy and established presence in the leveraged ETF market provide a competitive edge. The specific leverage ratio differentiates it from some competitors. The ETF provides a tool for experienced traders to express short-term bullish views on Tesla.

Volatility

TSLL is highly volatile due to its leveraged nature. Daily returns are magnified, so losses can also be substantial. The ETF is subject to the risks associated with leverage and concentrated exposure.

Market Risk

The ETF is subject to the risks of the equity market, including economic downturns and company-specific risks related to Tesla. Changes in investor sentiment towards Tesla can significantly impact the ETF's value.

Ideal Investor Profile

The ideal investor is an experienced, sophisticated trader with a high-risk tolerance seeking short-term exposure to Tesla. They should understand the intricacies of leveraged ETFs and the potential for rapid losses.

Market Risk

TSLL is best suited for active traders with a short-term investment horizon, and it's not appropriate for long-term investors or those seeking passive index tracking.

The GraniteShares 1.75x Long TSLA Daily ETF offers leveraged exposure to Tesla's daily performance, making it suitable for experienced traders seeking short-term gains. However, it carries a high degree of risk due to its leveraged nature and daily rebalancing, making it unsuitable for long-term investment strategies. Its performance is directly tied to Tesla's stock, and the fund is subject to market volatility. The fund's expense ratio is relatively high, reflecting the costs of managing a leveraged ETF.

Data Sources:

• GraniteShares ETF product page
• ETF.com
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Leveraged ETFs are high-risk investments. Consult with a qualified financial advisor before making investment decisions.