GraniteShares 1.75x Long TSLA Daily ETF (TSLR)TSLR

ETF GraniteShares 1.75x Long TSLA Daily ETF Overview

Profile:

This ETF provides investors with 1.75 times the daily performance of Tesla Inc. stock. It is designed for short-term, aggressive traders seeking to magnify their exposure to Tesla's price movements. The ETF uses swaps and other derivatives to achieve its objective, aiming to outperform the underlying asset on a daily basis.

Objective:

The primary goal is to generate returns that are 175% of the daily change in Tesla's stock price. This makes it suitable for investors who believe Tesla's stock will experience substantial short-term upward movement.

Issuer:

GraniteShares, a European ETF issuer known for its thematic and innovative products, offers this ETF. The company has a solid reputation and a growing presence in the ETF industry.

Market Share:

As of November 2023, GraniteShares 1.75x Long TSLA Daily ETF is a relatively new product and doesn't yet hold a significant market share in its niche segment. However, its unique exposure and high leverage potential attract a specific investor profile.

Total Net Assets:

As of November 2023, the total net assets under management for this ETF are not yet publicly disclosed due to the recent launch.

Moat:

This ETF's unique selling proposition is its leveraged exposure to Tesla, offering investors amplified gains compared to holding Tesla shares directly. Additionally, its daily rebalancing ensures that the leverage is reset each day, potentially mitigating risks associated with long-term compounding of leverage.

Financial Performance:

Given the recent launch date (as of November 2023), there is limited historical financial performance data available for this ETF. However, it's important to consider that its performance will closely track Tesla's stock movements with a 1.75x amplification.

Benchmark Comparison:

The most relevant benchmark for this ETF would be the daily price change of Tesla's stock. Analyzing the ETF's performance against this benchmark will reveal whether it successfully achieves its objective of amplifying daily returns.

Growth Trajectory:

The growth trajectory of this ETF heavily relies on the future price movement of Tesla stock. If Tesla experiences consistent upward price movements, the ETF is likely to witness increased investor interest and asset growth.

Liquidity:

Due to its recent launch, the average trading volume and bid-ask spread data for this ETF are not yet readily available. However, it's important to note that its underlying exposure to a highly liquid stock (Tesla) suggests that the ETF itself will likely exhibit reasonable liquidity.

Market Dynamics:

Market factors like macroeconomic conditions, investor sentiment towards Tesla, and news events impacting the company will significantly influence the ETF's performance.

Competitors:

Several other leveraged and inverse ETFs focusing on Tesla exist, such as:

• Direxion Daily TSLA Bull 3X Shares (TSLL)
• ProShares UltraPro QQQ (TQQQ)
• VelocityShares Daily 2x Long Tesla ETN (TSLQ)

These competitors offer varying degrees of leverage, and their market share percentages are subject to change.

Expense Ratio:

The ETF's expense ratio is currently unavailable due to the recent launch. This information will be crucial in assessing the overall cost-effectiveness of investing in this ETF.

Investment Approach & Strategy:

This ETF employs a daily rebalancing strategy to achieve 175% exposure to Tesla's daily performance. It uses swaps and other derivatives to generate the desired leverage, making it an actively managed product.

Key Points:

• Leveraged exposure: Amplifies Tesla's daily price movements by 1.75x.
• Daily rebalancing: Resets leverage daily, potentially mitigating compounding risk.
• Short-term focus: Designed for traders seeking magnified short-term gains.
• High volatility: Reflects the inherent volatility of Tesla stock with added amplification.
• Active management: Uses derivatives to achieve its objective.

Risks:

• Volatility: High potential for price swings due to Tesla's stock volatility and leverage.
• Market risk: Tesla stock price decline could lead to significant losses for investors.
• Counterparty risk: The ETF relies on swaps and derivatives, exposing it to counterparty default risk.
• Tracking error: The ETF might not perfectly track 175% of Tesla's daily return.
• Liquidity risk: Lower trading volume could impact entry/exit ease and price.

Who Should Consider Investing:

This ETF caters to aggressive, experienced investors comfortable with high volatility and seeking magnified short-term exposure to Tesla's price movements. It's not suitable for long-term buy-and-hold strategies or risk-averse investors.

Fundamental Rating Based on AI (on a scale of 1 to 10):

6.5

This rating considers factors like the ETF's niche market focus, high volatility profile, and potential liquidity challenges.

Justification:

While the ETF offers a unique and potentially lucrative exposure, its amplified risk and recent launch status necessitate a cautious approach. Investors should carefully assess their risk tolerance and investment objectives before considering this product.

Disclaimer:

The information provided is for general knowledge and informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making any investment decisions.

Resources:

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