TSLQ Profile
The AXS TSLA Bear Daily ETF is an actively managed exchange-traded fund (ETF) designed to deliver a daily return that is -100% of the performance of Tesla Inc. ("TSLA") before fees and expenses. The fund aims to achieve this objective by utilizing financial instruments that provide inverse exposure to TSLA's daily price movements. This strategy is implemented through a series of swap agreements and other derivatives specifically tied to TSLA's stock, effectively positioning the fund to benefit from declines in Teslas share price on a day-to-day basis.
Under normal market conditions, the fund maintains at least 80% of its assets in financial instruments that provide inverse exposure to Tesla's stock. This means that if Tesla's stock declines, the fund's value is designed to increase by a corresponding percentage, while the inverse holds true for increases in TSLA's stock price. The fund's strategy involves daily rebalancing to ensure it closely tracks the inverse performance of TSLA for that trading day, focusing exclusively on single-day performance and not extending to longer periods.
The ETF is characterized by its non-diversified nature, concentrating its investments solely on inverse positions related to Tesla's stock. This focused approach is aimed at investors looking to hedge against declines in Tesla's share price or speculate on short-term downward movements. As such, the fund does not spread its investments across various securities but rather dedicates its resources to achieving its specific daily performance goal relative to TSLA.
Investors should be aware that the fund's objective is confined to providing -100% of TSLA's performance for each single day and does not account for longer-term performance or compounding effects. This means that the fund is suited for those with a short-term outlook who are looking to profit from daily declines in Teslas stock price or hedge against potential downward movements. The use of swap agreements and other derivatives allows for precise inverse exposure, aligning the funds returns with its defined daily performance goal.
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