Direxion Shares ETF Trust - Direxion Daily TSLA Bear 1X Shares (TSLS)

Overview

The Direxion Daily TSLA Bear 1X Shares (TSLS) is an exchange-traded fund that seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the daily performance of Tesla (TSLA) stock. It aims to profit from a decline in the price of Tesla shares. It does not aim to provide inverse exposure for periods longer than a single day.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs, recognized for offering tactical investment tools. Their reliability depends on their ability to accurately track the intended daily inverse performance.

Management Expertise

Direxion has a specialized team focused on managing leveraged and inverse ETFs, requiring expertise in derivatives and short-term trading strategies.

Goal

To seek daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the daily performance of Tesla (TSLA) stock.

Investment Approach and Strategy

Strategy: The ETF employs a daily rebalancing strategy using derivatives to achieve its inverse exposure to Tesla's stock. It is not intended for long-term holding.

Composition The ETF's assets primarily consist of financial instruments such as swap agreements, futures contracts, and cash, designed to deliver the inverse of Tesla's daily performance. It does not directly hold Tesla shares.

Market Share: Difficult to precisely quantify market share, as it's a niche product focused solely on the inverse of a single stock.

Total Net Assets (AUM): 22850000

Key Competitors

Competitive Landscape

TSLS is a unique product that aims to achieve 1x inverse daily exposure to the price movement of TSLA stock. There are other inverse ETFs, but few offer this level of focused exposure to a single popular stock. TSLS advantages are its highly targeted focus, but its disadvantages include the risk of significant value erosion over longer holding periods due to daily compounding and the volatility of Tesla.

Historical Performance: Historical performance is highly dependent on Tesla's daily price movements and should be evaluated over short periods. Due to the daily rebalancing, long-term performance may significantly deviate from a simple inverse of Tesla's performance.

Benchmark Comparison: The ETF's benchmark is the inverse of Tesla's daily performance. Tracking is generally accurate for a single day, but the effects of compounding and fees will affect long-term performance.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume is moderate and varies depending on market conditions; higher trading volume generally correlates with higher interest in Tesla's price movements.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on trading volume and market volatility; it's typically wider than more liquid ETFs covering broader indices.

Market Environment Factors

Tesla's stock is influenced by factors such as electric vehicle demand, battery technology advancements, regulatory policies, and overall market sentiment towards growth stocks. These factors directly influence the performance of TSLS.

Growth Trajectory

TSLS's AUM and trading volume are tied to investor sentiment toward Tesla. Increased short-term bearish outlook on Tesla may lead to increased investment. There have been no changes in strategy or holdings recently.

Competitive Edge

TSLS's competitive edge lies in its highly specific focus on providing daily inverse exposure to Tesla. This concentrated focus, combined with the popularity and volatility of Tesla stock, makes it attractive to traders seeking short-term tactical positions. This precise targeting differentiates it from broader market inverse ETFs and attracts speculators looking to make directional bets on Tesla's daily price movements.

Volatility

TSLS is highly volatile due to the leveraged nature of the product and the inherent volatility of Tesla stock. It is not suitable for risk-averse investors.

Market Risk

TSLS is subject to market risk, particularly the risk that Tesla's stock price will increase, leading to losses for the ETF. Compounding effects can also significantly erode value over time.

Ideal Investor Profile

The ideal investor for TSLS is an experienced, active trader with a short-term bearish outlook on Tesla. They should be comfortable with high volatility and understand the risks of leveraged and inverse ETFs.

Market Risk

TSLS is best suited for active traders seeking short-term tactical exposure to Tesla's price movements. It is not appropriate for long-term investors or passive index followers.

The Direxion Daily TSLA Bear 1X Shares (TSLS) is a leveraged ETF that seeks to provide the inverse of Tesla's daily returns. It's a high-risk, high-reward instrument suited for experienced traders with a short-term bearish view on Tesla. Due to the daily rebalancing and compounding effects, it's not recommended for long-term holding. The ETF's performance is highly dependent on Tesla's price movements, and its value can erode significantly if Tesla's stock price increases. Investors should carefully consider their risk tolerance and understand the ETF's mechanics before investing.

Data Sources:

• DirexionShares.com
• SEC Filings
• Yahoo Finance
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Investing in leveraged and inverse ETFs carries significant risks, and investors should consult with a qualified financial advisor before making any investment decisions.