Direxion Shares ETF Trust - Direxion Daily TSLA Bull 1.5X Shares (TSLL)

ETF Direxion Shares ETF Trust - Direxion Daily TSLA Bull 1.5X Shares (TSLL)

Profile:

• Focus: TSLL is a leveraged exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, of 150% of the performance of the Tesla Motors TSLA Index.
• Asset Allocation: 100% equities, specifically in Tesla Inc. (TSLA) stock.
• Investment Strategy: TSLL uses derivatives and leverage to amplify the daily returns of TSLA. It does not hold TSLA shares directly.

Objective:

• The primary goal is to provide investors with magnified exposure to the daily price movements of TSLA stock.
• This ETF is suitable for investors with a bullish outlook on TSLA and a high tolerance for risk.

Issuer:

• Direxion Shares ETF Trust:
  • Reputation and Reliability: Direxion is a well-established issuer of leveraged and inverse ETFs, with over $40 billion in assets under management.
  • Management: The management team has extensive experience in managing alternative investment products.

Market Share:

• TSLL has a market share of approximately 0.2% in the leveraged and inverse ETF space.

Total Net Assets:

• As of January 31, 2023, TSLL has total net assets of approximately $13 million.

Moat:

• TSLL's unique selling proposition is its leveraged exposure to TSLA. This can be attractive to investors seeking to amplify their returns in a rising market.
• However, this leverage also magnifies losses in a falling market.

Financial Performance:

• Historical Performance: Since its inception in 2021, TSLL has delivered annual returns of 179.16% (as of January 31, 2023).
• Benchmark Comparison: TSLL has outperformed the S&P 500 index, which returned 28.7% over the same period.

Growth Trajectory:

• TSLL's growth is highly dependent on the future performance of TSLA stock.

Liquidity:

• Average Trading Volume: TSLL has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.25%.

Market Dynamics:

• Factors affecting TSLL's market environment include:
  • TSLA's stock price performance
  • Market sentiment towards electric vehicles and technology stocks
  • Interest rate movements

Competitors:

• Key competitors in the leveraged and inverse ETF space include:
  • ProShares UltraPro QQQ (TQQQ)
  • Direxion Daily S&P 500 Bull 3X Shares (SPXL)
  • VelocityShares Daily 2x VIX Short-Term ETN (TVIX)

Expense Ratio:

• TSLL's expense ratio is 0.85%.

Investment Approach and Strategy:

• Strategy: TSLL does not track a specific index but aims to deliver 150% of TSLA's daily performance.
• Composition: The ETF primarily holds swap agreements tied to the performance of TSLA.

Key Points:

• TSLL is a leveraged ETF designed for short-term investors with a bullish outlook on TSLA.
• It offers magnified exposure to TSLA's price movements, but also carries higher risk due to leverage.
• Investors should carefully consider their risk tolerance before investing in TSLL.

Risks:

• Volatility: TSLL is significantly more volatile than TSLA stock itself.
• Market Risk: TSLL's performance is directly tied to the price movements of TSLA, which can be influenced by various factors, including company-specific news and overall market conditions.
• Counterparty Risk: TSLL relies on swap agreements with financial institutions, which carry counterparty risk if the counterparty defaults.

Who Should Consider Investing:

• Investors with a strong bullish outlook on TSLA and a high tolerance for risk.
• Investors seeking short-term exposure to TSLA's price movements.

Fundamental Rating Based on AI:

Based on an AI-based analysis, TSLL receives a 6/10 rating.

• Strengths: High potential returns, unique leveraged exposure to TSLA.
• Weaknesses: High volatility, significant market risk, counterparty risk.

Resources and Disclaimers:

• Data sources: Direxion Shares ETF Trust website, ETF.com
• This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.