TSDD Profile
The GraniteShares 1.5x Short TSLA Daily ETF is an actively managed exchange-traded fund designed to provide investors with an amplified inverse exposure to Tesla Inc.'s daily stock performance. The fund's primary objective is to deliver -150% of the daily percentage change of Tesla's stock price, effectively aiming to profit from declines in Tesla's share value. This leveraged inverse exposure is achieved through the use of financial instruments, specifically a swap agreement tied to Tesla's stock performance.
The ETF's investment strategy involves entering into a swap agreement that allows the fund to replicate the inverse daily performance of Tesla's stock. By doing so, the fund seeks to offer a magnified opposite return of the underlying stock for each trading day. This approach is designed for short-term traders or investors looking to capitalize on anticipated declines in Tesla's stock price on a daily basis, rather than for long-term holdings.
Given its focus on providing -150% of the daily return of Tesla’s stock, the GraniteShares 1.5x Short TSLA Daily ETF is intended for investors with a high risk tolerance and a short-term trading horizon. The leveraged and inverse nature of the fund means it is not suitable for all investors, as it is primarily used for tactical trading strategies rather than long-term investing. The daily resetting of leverage and inverse performance can result in significant deviations from the intended return over extended periods, especially in volatile or trending markets.
Overall, the GraniteShares 1.5x Short TSLA Daily ETF offers a specialized tool for traders looking to gain from short-term declines in Tesla’s stock, using sophisticated financial instruments to achieve its investment goal. Its active management and focus on daily performance make it a high-risk, high-reward option, suitable for those looking to implement precise, short-term trading strategies based on the daily movements of Tesla's stock price.
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