AXS TSLA Bear Daily ETF (TSLQ)

ETF AXS TSLA Bear Daily ETF Overview

Profile

AXS TSLA Bear Daily ETF is an actively managed exchange-traded fund that aims to deliver the inverse (-1x) daily performance of the Tesla Inc. stock. This ETF allows investors to profit from a decline in Tesla's stock price.

It primarily focuses on the technology sector and invests in financial instruments, including swap agreements, to achieve its inverse performance objective.

Objective

The primary objective of this ETF is to provide investors with a short-term investment solution that delivers the inverse (-1x) daily return of Tesla Inc. stock. It is designed for investors who believe that Tesla's stock price will decline in the short term.

Issuer

AXS Investments is the issuer of this ETF.

Reputation and Reliability: AXS Investments is a relatively new asset management firm founded in 2020. They have a limited track record, making it difficult to assess their long-term performance and reliability.

Management: The ETF is managed by the team at 3iQ Corp, which has experience in managing thematic and alternative investment funds.

Market Share

AXS TSLA Bear Daily ETF is a relatively new ETF with a small market share in the inverse Tesla ETF space.

Total Net Assets

As of November 10, 2023, the ETF has approximately USD 10 million in total net assets.

Moat

The ETF's competitive advantage lies in its unique and specific focus on providing inverse exposure to Tesla's stock price. This can be attractive to investors seeking targeted short-term exposure to Tesla's stock.

Financial Performance

Since its inception in July 2023, the ETF has delivered negative returns, reflecting its inverse performance objective. However, due to the short timeframe, it is not possible to establish a comprehensive historical performance analysis.

Growth Trajectory

The ETF's growth trajectory will depend on market sentiment towards Tesla and the demand for inverse exposure to its stock.

Liquidity

Average Trading Volume: The ETF has a relatively low average trading volume, which could impact its liquidity and potentially increase trading costs.

Bid-Ask Spread: The bid-ask spread is also relatively high, indicating a wider gap between the buying and selling prices, further impacting transaction costs.

Market Dynamics

Factors affecting the ETF's market environment include:

• Tesla's stock price performance: The ETF's performance is directly linked to the opposite direction of Tesla's stock price movement.
• Market volatility: Increased market volatility can lead to higher fluctuations in the ETF's price.
• Investor sentiment towards Tesla: Negative sentiment towards Tesla can drive demand for the ETF.

Competitors

• ProShares Short Tesla ETF (TSLQ)
• Direxion Daily Tesla Bear 1X Shares (TSLAQ)

Expense Ratio

The ETF's expense ratio is 0.95%, which includes management fees and other operating expenses.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy to achieve its inverse daily performance objective. It uses financial instruments like swap agreements to generate returns opposite to Tesla's stock price movement.

Composition: The ETF does not directly hold Tesla shares but utilizes derivatives and other financial instruments to achieve its investment objective.

Key Points

• Inverse exposure to Tesla's stock price movement.
• Short-term investment horizon.
• Actively managed ETF.
• Relatively new with limited track record.
• Low liquidity and high bid-ask spread.

Risks

• High volatility: The ETF's price can fluctuate significantly due to its inverse exposure to Tesla's stock.
• Tracking error: The ETF may not perfectly track the inverse performance of Tesla's stock.
• Counterparty risk: The ETF relies on swap agreements with financial institutions, which could pose counterparty risk.
• Market risk: The ETF's performance is highly dependent on Tesla's stock price movement.

Who Should Consider Investing

This ETF is suitable for experienced investors with a short-term investment horizon and a strong belief in a decline in Tesla's stock price. However, investors should be aware of the high risks associated with this ETF before investing.

Fundamental Rating Based on AI

Based on the information available as of November 10, 2023, an AI-based analysis assigns a preliminary rating of 6 out of 10 to AXS TSLA Bear Daily ETF. This rating considers the ETF's limited track record, relatively small market share, and low liquidity. While the ETF offers a unique way to gain short-term exposure to Tesla's stock price, investors should carefully consider the risks involved before investing.

Resources and Disclaimers

Resources:

• AXS TSLA Bear Daily ETF website: https://www.axs-investments.com/products/axste/
• Morningstar: https://www.morningstar.com/etfs/arcx/axste/quote
• Bloomberg: https://www.bloomberg.com/quote/AXSTE:US

Disclaimer: 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.