GraniteShares 2x Long TSM Daily ETF (TSMU)

Overview

The GraniteShares 2x Long TSM Daily ETF (TSLL) seeks to provide daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the common stock of Taiwan Semiconductor Manufacturing Company Limited (TSM). It is a leveraged ETF focusing specifically on a single stock, TSM.

Reputation and Reliability

GraniteShares is a relatively new ETF provider, but generally considered reliable, focusing on niche and leveraged products.

Management Expertise

GraniteShares' management team has experience in creating and managing leveraged and inverse ETFs.

Goal

To provide daily investment results corresponding to two times the daily performance of TSM.

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy, aiming for 2x the daily return of TSM. It uses financial instruments such as swap agreements to achieve this leverage.

Composition The ETF holds financial instruments (primarily swaps) designed to replicate two times the daily performance of TSM.

Market Share: TSLL holds a small market share within the leveraged single-stock ETF space, which itself is a niche market.

Total Net Assets (AUM): 188207040

Key Competitors

• Direxion Daily TSMC Bull 2X Shares (TSML)

Competitive Landscape

The competitive landscape is limited, with TSLL and TSML being the primary options for leveraged exposure to TSM. TSLL and TSML likely compete on expense ratios, trading volumes and tracking effectiveness. A key disadvantage is the inherent risk of leveraged ETFs due to compounding, especially when held over long periods. The specific competition involves two identical products competing for total AUM.

Historical Performance: Historical performance is highly dependent on TSM's performance and is magnified by the 2x leverage. Due to the nature of leveraged ETFs, long-term performance may deviate significantly from 2x the underlying asset's performance.

Benchmark Comparison: The ETF's performance should be compared to 2x the daily performance of TSM. Deviations can occur due to fees, expenses, and the effects of compounding.

Expense Ratio: 1.75

Average Trading Volume

The average trading volume is moderate, but can fluctuate depending on market interest in TSM and leveraged products.

Bid-Ask Spread

The bid-ask spread can be wider than non-leveraged ETFs, reflecting the higher risk and lower liquidity.

Market Environment Factors

TSLL is affected by the performance of the semiconductor industry, global economic conditions, and company-specific news related to TSM.

Growth Trajectory

The ETF's growth trajectory is dependent on investor interest in leveraged ETFs and the performance of TSM. Strategy and holdings are unlikely to change significantly as the ETF's objective is fixed.

Competitive Edge

TSLL provides a readily available, leveraged exposure to TSM's daily price movements. Its advantage lies in offering a simple way for investors to magnify their potential gains (and losses) on TSM. There are no other significant differentiating factors other than the issuing company, which for this specific offering is not a significant differentiator. The ETF allows investors to gain high-risk, short-term exposure to TSM without directly trading options or complex derivatives.

Volatility

The ETF is highly volatile due to the 2x leverage, making it suitable for short-term trading strategies only.

Market Risk

The ETF is subject to market risk related to TSM, including semiconductor industry downturns, economic recessions, and geopolitical events. Compounding effects can also lead to significant losses over longer periods.

Ideal Investor Profile

The ideal investor is a sophisticated trader with a high risk tolerance, seeking short-term leveraged exposure to TSM and who thoroughly understands the risks associated with leveraged ETFs.

Market Risk

TSLL is best suited for active traders with a short-term horizon, not for long-term investors or passive index followers.

GraniteShares 2x Long TSM Daily ETF is a leveraged ETF designed to provide 2x the daily performance of TSM. Due to the high risks associated with leverage and compounding effects, it is suitable only for sophisticated, short-term traders. Investors should understand the risks and monitor their positions closely. While the ETF offers potential for magnified gains, it also carries a significant risk of amplified losses, particularly over extended holding periods.

Data Sources:

• GraniteShares Website
• ETF.com
• Yahoo Finance
• SEC Filings

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Investing in leveraged ETFs involves significant risks, including the potential for substantial losses. Consult with a qualified financial advisor before making any investment decisions.