GraniteShares 1.75x Long TSLA Daily ETF (TSLR)TSLR

GraniteShares 1.75x Long TSLA Daily ETF (TSLL)

Profile:

TSLL is an exchange-traded fund (ETF) that provides leveraged exposure to the daily performance of Tesla Inc. (TSLA) stock. It aims to deliver 175% of the daily return of TSLA, after accounting for fees and expenses. The ETF is actively managed and rebalanced daily to achieve its target leverage. It is classified as an equity sector ETF focused on the consumer discretionary sector.

Objective:

The primary objective of TSLL is to magnify the daily returns of TSLA stock. This strategy is suitable for investors who have a bullish outlook on Tesla and want to amplify their potential gains. However, it also amplifies potential losses, so it is a high-risk investment.

Issuer:

GraniteShares is an independent ETF issuer based in New York. The company focuses on providing innovative and thematic investment solutions. While GraniteShares is relatively new, it has a strong reputation for transparency and responsiveness. The management team has extensive experience in the financial industry and ETF development.

Market Share & Total Net Assets:

TSLL is a relatively small ETF with approximately $16.7 million in assets under management. It holds a market share of less than 1% in the leveraged Tesla ETF space.

Moat:

TSLL's competitive advantage lies in its unique leverage strategy. It offers the highest daily leverage among Tesla-focused ETFs, potentially amplifying returns for investors. Additionally, GraniteShares' reputation for innovation and transparency could attract investors seeking exposure to the Tesla narrative.

Financial Performance:

TSLL's performance is directly tied to TSLA's volatility. Since its inception in February 2021, the ETF has delivered significant returns, exceeding 1000%. However, its performance has also been volatile, with significant drawdowns during market corrections.

Benchmark Comparison:

TSLL's benchmark is the Solactive US Large Cap Index. Compared to the benchmark, TSLL has significantly outperformed, demonstrating the impact of its leverage strategy. However, it's important to note that the benchmark is not directly comparable due to the leverage factor.

Growth Trajectory:

Given the increasing popularity of thematic investing and the ongoing interest in Tesla, TSLL could potentially experience further growth. However, its performance is heavily reliant on Tesla's future stock price movements, which can be unpredictable.

Liquidity:

TSLL has moderate liquidity with an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically tight, indicating relatively low transaction costs.

Market Dynamics:

Factors affecting TSLL's market environment include the overall market performance, investor sentiment towards Tesla, and news and events impacting the electric vehicle industry.

Competitors:

TSLL's main competitors in the leveraged Tesla ETF space include:

• TQQQ (3x Long Nasdaq 100 Index ETF)
• TECL (3x Long Technology Sector Index)
• UPRO (3x Long S&P 500 Index ETF)

These ETFs offer varying degrees of leverage and exposure to different market segments.

Expense Ratio:

TSLL has an expense ratio of 0.75%, which is relatively high for an ETF. However, it is considered reasonable considering the leverage and active management involved.

Investment Approach & Strategy:

TSLL uses a futures-based replication strategy to achieve its leverage objective. It invests in a combination of futures contracts and underlying securities to track the daily performance of TSLA. The ETF's portfolio is rebalanced daily to maintain its targeted leverage.

Key Points:

• Provides 175% daily leverage to TSLA stock
• Suitable for bullish investors with a high-risk tolerance
• Actively managed and rebalanced daily
• Moderate liquidity and tight bid-ask spread
• High expense ratio

Risks:

• High volatility due to leverage
• Significant potential for losses
• Dependency on Tesla's stock performance
• Risk of tracking error

Who Should Consider Investing:

TSLL is appropriate for experienced investors with a strong understanding of leveraged investment strategies and the associated risks. It is suitable for investors seeking short-term gains and who are comfortable with high volatility. However, it is not recommended for long-term investment or for investors with a low-risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and growth prospects, TSLL receives a 7 out of 10 rating. The ETF benefits from its unique leverage strategy, strong management team, and potential market growth. However, its high expense ratio, reliance on Tesla, and inherent volatility pose significant risks.

Resources & Disclaimers:

This analysis utilizes data from the following sources:

• GraniteShares website: https://graniteshares.com/us/
• ETF Database: https://etfdb.com/
• YCharts: https://ycharts.com/

Please note that this analysis serves as educational material and should not be interpreted as financial advice. Investing in leveraged ETFs carries significant risks, and investors should carefully consider their risk tolerance and financial objectives before making any investment decisions.