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

Overview

The Direxion Daily TSLA Bear 1X Shares (TSLS) seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the daily performance of Tesla (TSLA) stock. It provides a way for investors to potentially profit from a decrease in the value of Tesla shares.

Reputation and Reliability

Direxion is a well-known issuer of leveraged and inverse ETFs, providing a range of specialized investment products. They are known for their expertise in creating and managing these types of funds.

Management Expertise

Direxion has a dedicated team of portfolio managers and investment professionals specializing in managing leveraged and inverse ETFs.

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 derivatives-based strategy to achieve its inverse daily performance target, using instruments like swap agreements.

Composition The ETF's assets primarily consist of financial instruments designed to provide the inverse daily performance of Tesla (TSLA).

Market Share: Relatively small market share within the broader inverse ETF market, as its focus is solely on Tesla's inverse daily performance.

Total Net Assets (AUM): 39540000

Key Competitors

• GraniteShares 1.25x Short TSLA Daily ETF (TSLI)
• AXS TSLA Bear Daily ETF (TSLQ)

Competitive Landscape

The competitive landscape includes other leveraged and inverse ETFs targeting Tesla or the broader electric vehicle market. TSLS competes with similar products but offers 1x inverse exposure. The advantages include providing a specific inverse exposure to TSLA, while the disadvantage lies in potential tracking errors and decay due to the daily reset.

Historical Performance: Performance is directly tied to the inverse daily performance of Tesla (TSLA). As an inverse ETF, its performance will be the opposite of Tesla's on a daily basis. Past performance is not indicative of future results.

Benchmark Comparison: The ETF does not track a broad market index; instead, it's benchmark is the inverse daily performance of TSLA.

Expense Ratio: 0.95

Average Trading Volume

Average trading volume varies but is generally sufficient for most traders, though larger orders may experience wider spreads.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and trading volume.

Market Environment Factors

Tesla's stock performance is influenced by factors such as electric vehicle market trends, technological advancements, regulatory changes, and overall market sentiment. TSLS is affected by these same factors, but in reverse.

Growth Trajectory

The ETF's growth trajectory is dependent on the investor interest in shorting Tesla, which can fluctuate based on market outlooks.

Competitive Edge

TSLS offers a straightforward and accessible way for investors to express a short-term bearish view on Tesla. Its primary advantage lies in its specific focus on the inverse daily performance of TSLA. The 1x leverage is less risky than higher leveraged inverse TSLA ETFs. However, it also means lower potential profit and losses than the leveraged ones. The daily reset feature, while potentially leading to decay, provides a defined exposure for short-term trading strategies.

Volatility

The ETF is subject to high volatility due to the nature of leveraged and inverse ETFs and the volatility of Tesla's stock.

Market Risk

The ETF is subject to market risk associated with Tesla and the electric vehicle sector. The daily reset also introduces risks associated with compounding and tracking errors over longer periods.

Ideal Investor Profile

The ETF is suitable for sophisticated traders who have a short-term negative outlook on Tesla and understand the risks associated with leveraged and inverse ETFs.

Market Risk

TSLS is best suited for active traders with a short-term investment horizon, not for long-term investors due to the effects of compounding and daily resets.

Direxion Daily TSLA Bear 1X Shares (TSLS) provides a tool for sophisticated investors to gain short-term inverse exposure to Tesla's daily stock performance. The ETF is designed for short-term trading strategies, as its daily reset feature can lead to significant deviations from the inverse of Tesla's cumulative performance over longer periods. It is subject to high volatility and market risk, including risks associated with derivatives and compounding. As an inverse ETF, its value is directly related to the inverse performance of Tesla, therefore it is critical that investors fully understand the risks involved before investing.

Data Sources:

• Direxion
• Yahoo Finance
• etf.com

Disclaimers:

This data is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making investment decisions. Leveraged and inverse ETFs are inherently risky and may not be suitable for all investors.