GraniteShares 2x Long TSM Daily ETF (TSMU)

Overview

The GraniteShares 2x Long TSM Daily ETF (TSLL) seeks daily investment results, before fees and expenses, of 200% of the daily performance of the common stock of Taiwan Semiconductor Manufacturing Company Limited (TSM). It is a leveraged ETF designed for short-term trading rather than long-term investment.

Reputation and Reliability

GraniteShares is a relatively new but established ETF provider, specializing in leveraged and inverse products. Their reputation is building as a niche provider for sophisticated investors.

Management Expertise

GraniteShares has a team with experience in financial markets and ETF management, focused on providing targeted exposure through leveraged 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 Taiwan Semiconductor Manufacturing Company Limited (TSM).

Investment Approach and Strategy

Strategy: The ETF employs a leveraged strategy to amplify the daily returns of TSM stock.

Composition The ETF primarily holds financial instruments and derivatives designed to achieve its leveraged return objective based on TSM stock.

Market Share: TSLL's market share within the leveraged single-stock ETF category focused on TSM is substantial but volatile, depending on trading interest.

Total Net Assets (AUM): 175254506

Key Competitors

• Direxion Daily TSMC Bull 2X Shares (TSML)
• REX 2x Long TSM Call Option Strategy ETF (TSMC)

Competitive Landscape

The leveraged ETF market is competitive, with several providers offering similar products on different underlying assets. TSLL competes with other leveraged TSM ETFs. TSLL's advantages include its brand recognition and existing trading volume, while disadvantages include the inherent risks of leveraged products and competition from potentially lower-cost alternatives. TSLL faces more competition on margin and cost than other TSM based products.

Historical Performance: Historical performance is highly volatile due to the leveraged nature of the ETF and the price fluctuations of TSM. Investors should review performance data for various short-term periods.

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

Expense Ratio: 0.99

Average Trading Volume

The average trading volume for TSLL is moderate, indicating reasonable liquidity but it can vary based on market interest.

Bid-Ask Spread

The bid-ask spread for TSLL can be relatively wide, especially during periods of high volatility, reflecting the cost of trading this leveraged ETF.

Market Environment Factors

TSLL's performance is significantly impacted by factors affecting TSM, including the semiconductor industry outlook, global economic conditions, and technological advancements.

Growth Trajectory

Growth depends on TSM's performance and investor appetite for leveraged exposure. The strategy and holdings remain consistent, focusing on 2x daily returns of TSM.

Competitive Edge

TSLL provides a straightforward way to gain leveraged exposure to the daily performance of TSM. Its competitive edge lies in its simplicity and accessibility for traders seeking amplified daily returns. However, the leveraged nature of the ETF makes it inherently risky, and it is not suitable for all investors. GraniteShares also maintains a marketing effort to educate investors about their unique ETF products.

Volatility

TSLL exhibits very high volatility due to its leveraged nature, magnifying the daily price swings of TSM.

Market Risk

The ETF is subject to market risk related to TSM and the semiconductor industry, as well as the risks associated with leveraged investments, including potential for amplified losses.

Ideal Investor Profile

The ideal investor is a sophisticated trader with a high-risk tolerance who understands the risks of leveraged ETFs and seeks short-term amplified exposure to TSM.

Market Risk

TSLL is suitable for active traders with a short-term investment horizon. It is not suitable for long-term investors due to the effects of compounding and potential for significant losses.

GraniteShares 2x Long TSM Daily ETF (TSLL) is a leveraged ETF designed to provide two times the daily performance of Taiwan Semiconductor Manufacturing Company Limited (TSM). It is a high-risk, high-reward investment vehicle suitable for sophisticated traders seeking short-term amplified returns. Due to the leveraged nature of the ETF, it experiences high volatility and is not appropriate for long-term investors. Investors should carefully consider their risk tolerance and investment objectives before investing in TSLL.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in leveraged ETFs involves significant risks, including the potential for substantial losses.