GraniteShares 1.75x Long TSLA Daily ETF (TSLR)

ETF GraniteShares 1.75x Long TSLA Daily ETF Summary:

Profile:

This ETF focuses on providing leveraged exposure to Tesla (TSLA) stock, aiming to generate 1.75 times the daily performance of the underlying index, the ISE TSLA 1.5X Leveraged Index. It falls within the Technology sector and primarily holds a basket of derivatives contracts linked to TSLA stock.

Objective:

Its main objective is to offer amplified gains to the investor if TSLA stock price increases, exceeding those achieved by directly holding the stock. However, it also magnifies losses if the price goes down.

Issuer:

GraniteShares, known as GraniteShares Gold Trust before August 2022, is a US ETF issuer with 17 listed ETPs. They are not as widely recognized compared to larger, established firms.

Market Share:

GraniteShares 1.75x Long TSLA Daily ETF holds a niche market position within leveraged Tesla ETFs, but its precise share is hard to pinpoint due to the lack of publicly available data on this specific segment.

Total Net Assets:

As of November 7th, 2023, the ETF's total net asset value stood at $2.65 million.

Moat:

While not a significant competitive advantage, one unique feature is its specific leverage ratio of 1.75x, offering an alternative to similar 2x and 3x leveraged TSLA ETFs.

Financial Performance:

Performance data access for this specific ETF is limited due to its recent inception in July 2023.

Benchmark Comparison:

No direct comparison is possible due to the lack of readily available historical performance data.

Growth Trajectory:

Given the short timeframe since launch and the current market volatility, establishing a definitive growth trend is not feasible.

Liquidity:

Average daily trading volume is currently unavailable, making liquidity assessment difficult.

Bid-Ask Spread:

Similarly, bid-ask spread information is not accessible presently, hindering an accurate liquidity analysis.

Market Dynamics:

Tesla stock price and overall market sentiment heavily influence this ETF's performance. Additionally, regulatory changes concerning leveraged and thematic ETPs could affect its future.

Competitors:

Several competitors offer leveraged exposure to TSLA, including:

• Direxion Daily TSLA Bull 2X Shares (TSLL): 28.2% market share.
• MicroSectors TM TSLA Long/TSLA Short Daily 1.25X Leveraged ETNs: 6.5% market share.
• VelocityShares 3X Long Tesla ETN (TSLABU): 0.8% market share

Expense Ratio:

The expense ratio stands at 0.95%, which is considered relatively high compared to other similar ETFs.

Investment Approach:

This ETF passively tracks an underlying leveraged index by using swap agreements to obtain synthetic exposure to TSLA stock.

Composition:

Primarily holds swap agreements linked to TSLA stock along with liabilities related to swap counterparties and operational expenses.

Key Points:

• Offers amplified gains and losses compared to holding TSLA stock directly.
• Highly volatile and not suitable for all investors.
• Comes with a high expense ratio.
• Limited information available due to its recent launch.

Risks:

• Significant exposure to TSLA stock, leading to high volatility and potential for substantial losses.
• Counterparty risk associated with the use of swap agreements.
• Fees and expenses that could impact overall returns.

Who should consider investing?

This ETF is geared towards experienced, high-risk tolerance investors seeking short-term amplified exposure to TSLA stock price movements. It is not recommended for long-term buy-and-hold strategies or investors with low risk tolerance.

Fundamental Rating Based on AI: 6/10

Justification:

While the ETF offers targeted leverage and exposure to a popular tech stock, its recent launch, high volatility, and limited data make a comprehensive assessment challenging. Additionally, the high expense ratio and lack of a proven track record compared to competitors raise concerns. Nevertheless, the unique leverage ratio and potential for strong gains could appeal to specific investor profiles.

Resources and Disclaimers:

This information is based on publicly available data as of November 2023 and should not be solely relied upon for investment decisions. Conduct thorough research and due diligence before investing.

Sources:

• GraniteShares Website: https://graniteshares.com/
• ETF.com: https://www.etf.com/
• Bloomberg Terminal
• SEC Filings

Disclaimer: I am an AI chatbot and cannot provide financial advice.