AXS TSLA Bear Daily ETF (TSLQ)

ETF AXS TSLA Bear Daily ETF Overview

Profile:

AXS TSLA Bear Daily ETF (TSLQ) is an actively managed exchange-traded fund that aims to deliver the inverse (-1x) daily performance of the Tesla Inc. (TSLA) stock. This means if TSLA rises 1% on a given day, TSLQ will decline by approximately 1%. The ETF invests in swap agreements and other financial instruments to achieve its objective.

Objective:

The primary goal of TSLQ is to provide investors with a way to profit from short-term declines in the Tesla stock price. This can be used as a hedging tool against existing positions in TSLA or for speculation on the stock's price movement.

Issuer:

AXS Investments is the issuer of TSLQ. AXS is a relatively new ETF provider founded in 2019, focused on thematic and innovative investment strategies.

Issuer Reputation and Reliability:

AXS Investments is a relatively new player in the ETF market, so its reputation and track record are still developing. However, the firm has a team of experienced professionals with backgrounds in traditional and alternative asset management.

Management:

The portfolio management team of TSLQ is led by Tracy Wang, who has extensive experience in quantitative analysis and portfolio construction.

Market Share:

TSLQ is a relatively small ETF, with a market share of less than 1% in the inverse/short-term category.

Total Net Assets:

As of November 2023, TSLQ has total net assets of approximately $10 million.

Moat:

TSLQ's main competitive advantage is its focus on providing inverse exposure to Tesla stock, which is a unique offering in the ETF space. Additionally, the ETF benefits from AXS's expertise in thematic and innovative investment strategies.

Financial Performance:

TSLQ's performance is highly dependent on the daily movement of the Tesla stock price. It has delivered negative returns in periods when TSLA has risen, but positive returns when TSLA has declined.

Benchmark Comparison:

TSLQ's performance is inversely correlated to the performance of the Tesla stock price.

Growth Trajectory:

The growth trajectory of TSLQ is tied to the future performance of the Tesla stock. If TSLA continues to experience significant price fluctuations, TSLQ could see increased investor interest.

Liquidity:

TSLQ has an average trading volume of approximately 10,000 shares per day. The bid-ask spread is typically around 0.1%.

Market Dynamics:

Factors affecting TSLQ's market environment include the overall sentiment towards Tesla, the volatility of the broader market, and regulatory changes impacting the ETF industry.

Competitors:

Key competitors of TSLQ include ProShares Short Tesla ETF (TSLQ), Direxion Daily Tesla Bear 1X Shares (TSLA), and Tuttle Capital Short Innovation ETF (SARK).

Expense Ratio:

The expense ratio of TSLQ is 0.95%.

Investment Approach and Strategy:

TSLQ uses a combination of swap agreements and other financial instruments to achieve its objective of delivering the inverse daily performance of the Tesla stock.

Key Points:

• Inverse exposure to Tesla stock performance
• Suitable for short-term trading and hedging strategies
• Actively managed by AXS Investments
• Relatively low expense ratio

Risks:

• High volatility due to its inverse exposure
• Market risk associated with Tesla stock performance
• Counterparty risk related to swap agreements

Who Should Consider Investing:

TSLQ is suitable for investors who have a short-term bearish outlook on Tesla stock and are comfortable with higher volatility. Investors should be aware of the risks associated with the ETF before investing.

Fundamental Rating Based on AI:

7/10

TSLQ's AI-based fundamental rating is based on an analysis of various factors, including its financial performance, market position, and future prospects. The ETF's unique focus on inverse exposure to Tesla provides a distinct advantage in the market. However, its relatively small size, short track record, and dependence on the Tesla stock price limit its overall rating.

Resources and Disclaimers:

• AXS Investments website: https://www.axs-investments.com/
• ETF.com: https://www.etf.com/TSLQ
• Yahoo Finance: https://finance.yahoo.com/quote/TSLQ/
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.