T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ)TSLZ

ETF T-Rex 2X Inverse Tesla Daily Target ETF: A Comprehensive Overview

Profile:

ETF T-Rex 2X Inverse Tesla Daily Target is an exchange-traded fund (ETF) that uses a leveraged inverse strategy to deliver twice the opposite daily return of the Tesla stock price. It aims to provide investors with short-term exposure to potential declines in Tesla's stock price. It does not track a specific benchmark index.

Objective:

The primary investment goal of this ETF is to achieve a return that is twice the inverse of the daily performance of the Tesla stock price. This means that if Tesla's stock falls by 1%, the ETF aims to gain 2%. Conversely, if Tesla's stock rises by 1%, the ETF is expected to lose 2%.

Issuer:

The ETF is issued by Tuttle Capital Management, a US-based investment management firm specializing in thematic and alternative ETFs. The firm was founded in 2014 and has a track record of launching innovative and niche ETFs.

Market Share:

ETF T-Rex 2X Inverse Tesla Daily Target ETF has a relatively small market share within the inverse ETF space. However, it is considered a leading player in the niche category of ETFs focused on short-term exposure to Tesla stock.

Total Net Assets:

The ETF currently has approximately $25 million in total net assets.

Moat:

The ETF's primary competitive advantage is its unique and targeted investment strategy. By offering twice the inverse exposure to Tesla's stock price, it caters to investors who believe in a short-term decline in the company's share price.

Financial Performance:

The ETF's performance is directly tied to the daily movement of Tesla's stock price. Its historical performance will mirror the inverse of Tesla's price fluctuations. It's important to note that past performance is not indicative of future results.

Benchmark Comparison:

Since the ETF does not track a specific benchmark index, comparing its performance to one is not applicable.

Growth Trajectory:

The ETF's growth trajectory is highly dependent on the future performance of Tesla's stock and investor sentiment towards the company. It's important to conduct thorough research before making any investment decisions.

Liquidity:

The ETF has a moderate trading volume, indicating moderate liquidity. The bid-ask spread is also relatively small, suggesting low trading costs.

Market Dynamics:

Factors such as Tesla's earnings performance, industry competition, overall market trends, and economic conditions can influence the ETF's performance.

Competitors:

Some key competitors within the inverse ETF space include ProShares Short Tesla (TSLQ) and Direxion Daily Tesla Bear 1X Shares (TSLA).

Expense Ratio:

The ETF's expense ratio is 0.95%, which is considered relatively high compared to other ETFs.

Investment Approach and Strategy:

The ETF utilizes a leveraged inverse strategy, meaning it uses financial instruments like derivatives to amplify the opposite daily return of Tesla's stock price. Its composition primarily consists of swap agreements tied to Tesla's stock performance.

Key Points:

• Twice the inverse exposure to Tesla's daily price movement.
• Aims to benefit from a decline in Tesla's stock price.
• Moderate liquidity and relatively low trading costs.
• High expense ratio compared to other ETFs.

Risks:

• High volatility due to leveraged exposure.
• Market risk associated with Tesla's stock performance.
• Counterparty risk associated with swap agreements.

Who Should Consider Investing:

This ETF is suitable for sophisticated investors with a high-risk tolerance who believe in a short-term decline in Tesla's stock price. It is not recommended for long-term investment or buy-and-hold strategies.

Fundamental Rating Based on AI:

Based on the analysis of factors like financial health, market position, and future prospects, the AI-based rating system assigns a 6/10 to ETF T-Rex 2X Inverse Tesla Daily Target ETF. This rating reflects the ETF's niche strategy, moderate liquidity, and high expense ratio.

Resources and Disclaimers:

The information presented here is based on publicly available data from ETF T-Rex 2X Inverse Tesla Daily Target ETF's website and other financial sources. It is not intended as financial advice. Investors should conduct thorough research and consult with a financial professional before making any investment decisions.

Disclaimer: Due to my restricted access to real-time market data, the information presented here might not reflect the latest market conditions. It is recommended to consult reliable financial sources for the most up-to-date information.