GraniteShares 1.75x Long TSLA Daily ETF (TSLR)

ETF GraniteShares 1.75x Long TSLA Daily ETF (GLL) Overview:

Profile:

GLL is a leveraged ETF that seeks to deliver 1.75 times the daily performance of the Tesla Inc. (TSLA) stock. It invests primarily in swaps and other derivative instruments that track TSLA's performance. GLL is suitable for investors seeking short-term, amplified exposure to TSLA's price movements.

Objective:

The primary investment goal of GLL is to provide investors with magnified returns on TSLA's daily performance. This can benefit investors who believe TSLA's stock price will increase significantly in the short term.

Issuer:

GraniteShares is a relatively new ETF issuer with a focus on innovative and thematic investment products. Although new, GraniteShares adheres to high regulatory standards and provides investors with transparency through regular reporting and disclosures.

Market Share:

GLL is a niche product within the leveraged ETF space, focusing specifically on TSLA. It holds a relatively small market share compared to broader market ETFs but attracts investors seeking targeted exposure to TSLA.

Total Net Assets:

As of October 26, 2023, GLL's total net assets were approximately $15.2 million.

Moat:

GLL's competitive advantage lies in its unique offering of leveraged exposure to TSLA. It caters to a specific investor segment seeking amplified returns on TSLA's daily performance, setting it apart from general market ETFs.

Financial Performance:

GLL's performance is directly tied to TSLA's daily price movements. Given the amplified nature of the ETF, its performance can be significantly higher or lower than TSLA's during the same period. Investors should analyze historical performance data alongside TSLA's stock price movements.

Benchmark Comparison:

Comparing GLL's performance to TSLA's price movement directly is the most relevant benchmark. This allows investors to understand how effectively the ETF amplifies TSLA's daily returns.

Growth Trajectory:

GLL's growth trajectory is closely tied to TSLA's stock price performance and investor sentiment towards the company. Analyzing historical data and market trends can provide insights into potential growth opportunities.

Liquidity:

GLL's average daily trading volume is relatively low compared to broader market ETFs. This may impact the ease of buying and selling shares, potentially resulting in higher bid-ask spreads.

Market Dynamics:

Economic indicators, sector growth prospects, and current market conditions for the technology sector, particularly electric vehicles, will influence GLL's market environment.

Competitors:

Key competitors include other leveraged ETFs targeting TSLA or the broader technology sector. These competitors may offer similar or differentiating features, impacting GLL's market share.

Expense Ratio:

GLL's expense ratio is 0.75%, which includes management fees and other operational costs. Investors should consider this expense when evaluating the ETF's overall cost-effectiveness.

Investment Approach and Strategy:

GLL employs a leveraged investment strategy, primarily utilizing swaps to achieve its objective of 1.75x daily TSLA performance. The ETF's composition is not publicly available due to its use of derivative instruments.

Key Points:

• Amplified exposure to TSLA's daily price movements (1.75x)
• Suitable for short-term investment horizons
• Relatively low trading volume and potentially wider bid-ask spreads
• Expense ratio of 0.75%
• Performance directly tied to TSLA's stock price

Risks:

• High volatility due to leveraged nature
• Market risk associated with TSLA's stock price
• Potential tracking error due to the use of derivatives
• Liquidity risk due to low trading volume

Who Should Consider Investing:

GLL is suitable for sophisticated investors with a high-risk tolerance and a strong belief in TSLA's short-term price appreciation. Investors should thoroughly understand the risks associated with leveraged ETFs and conduct comprehensive due diligence before investing.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, GLL receives a rating of 6 out of 10. This rating reflects the ETF's niche focus, amplified risk profile, and dependence on TSLA's performance.

Resources and Disclaimers:

Data for this analysis was gathered from the following sources:

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

This analysis is provided for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making investment decisions.