To The Moon

🌟🌟🌟$Direxion Daily TSLA Bull 1.5X Shares(TSLL)$  and $GRANITESHARES 1.5X LONG NVDA DAILY ETF(NVDL)$  are 2 of the most popular Single Stock ETFs this year.  Are they worth buying?

Tesla and Nvidia are 2 of the hottest stocks this year.  Tesla is up 125% year todate while Nvidia is up a whopping 236%.  TSLL and NVDL are single stock ETFs that combine these 2 hot favourites with leverage.  You can call them ETFs on steroids.  Both offer 1.5 times leverage. 

These ETFs are not for the risk adverse investors as they are much more volatile than investing in the stocks themselves. 

However for the active trader, TSLL and NVDL offer outsized gains in the short term.    TSLL is up 184% year todate and NVDL is up 400% year todate.

TSLL became the first listed US single stock ETF to surpass USD 1 billion in July 17 2023.  This is an impressive achievement for an ETF that was only launched in August 9 2022 and only had USD 168 million in assets under management at the start of 2023.

TSLL's success can be attributed to a combination of rapid price increase in Tesla's stock since the start of 2023 along with strong inflows of cash into TSLL.

Tesla is a unique stock with a cult like following as it is led by Elon Musk.    Strong vehicle sales, adoption of its EV charging trchnology by rivals, the launch of Cybertruck and robotaxi hopes plus FSD have led to this year 's Tesla jump on share price.

The next most popular Single Stock ETF is NVDL with USD 253 million in  assets under management.  Nvidia is the stock of the year due to its dominant position in AI chips.  This has been a great year for Nvidia as its share price has tripled and it has reached the Trillion Dollar Club status.

While TSLL and NVDL have experienced outsized gains so far this year, it must be remembered that they are super volatile.  Gains and losses both get magnified.   

Another key advantage of investing in TSLL and NVDL is that they allow the small retail investors to have access to leverage.  This is normally only reserved for big investors and institutions.

Also the most you can lose is  capped at the price you pay for the ETF.  However it is important to exercise caution and not get overexposed to leveraged ETFs.

TSLL and NVDL also have high expense ratio due to the fact that they are rebalanced every day.   The expense ratio for TSLL is 1.08% while NVDL is 1.15%.

Are TSLL and NVDL worth buying?  It depends on the individual investor,  their goals and risk appetite.    There is no right and wrong in investing.

Tesla and Nvidia are part of the Magnificent 7 for the simple reason and that is they excel in what they do.  Both are market leaders in their product offering.  Both have wide moats.  Both are profitable and have rock solid balance sheet.  Both have excellent management team. 

So for me, TSLL and NVDL are worth buying in the short term but not for long term holding. 

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