T-REX 2X Long Tesla Daily Target ETF (TSLT)

Overview

The T-REX 2X Long Tesla Daily Target ETF (TSLT) aims to provide 2x the daily performance of Tesla (TSLA) stock. It is designed for investors seeking amplified short-term gains or hedging strategies related to Tesla's price movements. This is not a buy-and-hold ETF, as compounding effects can significantly deviate from the stated 2x daily target over longer periods.

Reputation and Reliability

REX Shares is known for its leveraged and inverse ETFs, often focusing on niche markets. Their reputation is based on providing volatility products that meet specific investment objectives, but understanding the risks is crucial.

Management Expertise

REX Shares' management team has experience in creating and managing complex ETF products, particularly in the area of leveraged and inverse strategies.

Goal

To seek daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the common stock of Tesla, Inc.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, using financial instruments such as swaps and options to achieve its 2x daily target. It is actively managed.

Composition The ETF's holdings primarily consist of derivative instruments like swaps and options related to Tesla stock, alongside cash or cash equivalents for collateral purposes.

Market Share: TSLT has a relatively small market share within the leveraged single-stock ETF market.

Total Net Assets (AUM): 28473648

Key Competitors

• GraniteShares 2x Long Tesla Daily ETF (TSLL)
• Direxion Daily TSLA Bull 2X Shares (TSLL)

Competitive Landscape

The leveraged Tesla ETF market is dominated by TSLL. TSLT competes directly with other 2x long Tesla ETFs, and differentiation hinges on tracking accuracy and expense ratios. TSLT's advantage lies in potentially tighter tracking or lower fees, although these can fluctuate. The disadvantage is being a less established ETF.

Historical Performance: Historical performance is highly dependent on Tesla's stock performance. Due to the leveraged nature, performance can be significantly amplified in both directions.

Benchmark Comparison: The ETF's benchmark is 2x the daily return of Tesla stock. Tracking error may occur due to fees, expenses, and the complexities of leveraged investing.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume is moderate, indicating reasonable liquidity, but can vary depending on Tesla's trading activity.

Bid-Ask Spread

The bid-ask spread can be relatively wide, especially during periods of high volatility in Tesla's stock.

Market Environment Factors

Economic indicators generally have an indirect effect. Tesla's stock is more directly influenced by news events and market sentiment towards electric vehicles and renewable energy. Interest rate fluctuations can impact the cost of leverage.

Growth Trajectory

The ETF's growth is directly tied to Tesla's stock performance and investor appetite for leveraged exposure. Changes in Tesla's business, technology, or market perception directly affect the ETF's trajectory. Strategy and holdings do not undergo significant change frequently.

Competitive Edge

TSLT's competitive edge, if any, stems from precise tracking of its 2x daily target and competitive expense ratios compared to peers. It offers a straightforward way for investors to amplify their exposure to Tesla's daily price movements. The ETF's survival hinges on investor preference and trading volume. This ETF provides tools for both aggressive short term investing and hedging.

Volatility

The ETF exhibits very high volatility due to its leveraged nature, amplifying Tesla's already volatile stock price.

Market Risk

The primary market risk is concentrated exposure to Tesla, making the ETF susceptible to any negative news or events impacting the company. Leveraged funds amplify both gains and losses, so the potential for significant losses is high.

Ideal Investor Profile

This ETF is suitable for sophisticated investors and active traders who have a high-risk tolerance and a short-term investment horizon. It is not recommended for buy-and-hold investors or those seeking long-term capital appreciation.

Market Risk

The ETF is best suited for active traders seeking short-term tactical exposure to Tesla or those implementing hedging strategies.

The T-REX 2X Long Tesla Daily Target ETF (TSLT) provides leveraged exposure to Tesla's daily price movements, targeting 2x the daily return. It is intended for short-term trading and carries significant risk due to its leveraged structure. While offering the potential for amplified gains, investors must be aware of the heightened potential for losses and the impact of compounding over time. This ETF is only suitable for risk-tolerant active traders with a strong understanding of leveraged products and a short-term focus. Competition in this niche market is significant, dominated by other similar products from GraniteShares.

Data Sources:

• REX Shares Website
• ETF.com
• Yahoo Finance

Disclaimers:

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