The 1st Single-Stock Bear ETF of TESLA: TSLQ Starts On Trading
The first short $Tesla Motors(TSLA)$ ETF - $Leverage Shares -3x Short Tesla ETC(TSLQ)$- will launch on Jul 14th Eastern Time on US stock market. What is Single Stock Leveled / Invest ETFs? What's Launching and What's Filed?
Senior ETF Analyst of @Bloomberg said
It probably has best chance of success IMO among the first wave of these single stock ETFs.
Some opinions from Twitter:
Source from Twitter
There will be more single stock ETFs coming.
1. What is Single Stock Leveled / Invest ETFs
The SEC Approves Single-Stock Leveraged and Inverse ETFs. Lori J. Schock, Director of the Office of Investor Education and Advocacy of SEC, explained in the press release that
“unlike traditional ETFs, or even other levered and/or inverse ETFs, these levered and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification.”
Source From SEC.com
2. What's Launching and What's Filed
AXS Investments' filing for 18 different funds was just approved and should begin trading sometime this week. The ETFs will cover both bear and bull positions on a number of securities that span many sectors.
Companies that AXS is looking to offer leveraged or inverse positions on include $Tesla Motors(TSLA)$, $NVIDIA Corp(NVDA)$, $ConocoPhillips(COP)$, $Pfizer(PFE)$,$Salesforce.com(CRM)$, $Nike(NKE)$, $Boeing(BA)$, $PayPal(PYPL)$, and $Wells Fargo(WFC)$ The leveraged and inverse strategies range anywhere from 1x on $Tesla Motors(TSLA)$ to 2x on $Pfizer(PFE)$, $Nike(NKE)$, and $ConocoPhillips(COP)$.
Direxion filed in February with the SEC for a wide range of leveraged and inverse funds based on single securities like $Meta Platforms, Inc.(META)$, $Netflix(NFLX)$, $Apple(AAPL)$,$Microsoft(MSFT)$, $Amazon.com(AMZN)$, $Alphabet(GOOG)$, $NVIDIA Corp(NVDA)$, and $Tesla Motors(TSLA)$, with both 1x bear and 2x bull and bear positioning on each.
GraniteShares also filed in February with offerings that are all 2x long daily funds with the exception of a 1x short daily on Tesla; the companies ranged from $Tesla Motors(TSLA)$ , $NVIDIA Corp(NVDA)$, $Microsoft(MSFT)$, and $Alphabet(GOOG)$ to $Walt Disney(DIS)$,$Ford(F)$, $Peloton Interactive, Inc.(PTON)$, $Uber(UBER)$, and several Chinese companies currently listed in the U.S., such as $NIO Inc.(NIO)$and $Alibaba(BABA)$.
“These ETFs could best be used ahead of earnings for high-profile companies like Tesla or NVDIA where there tends to be significant short-term moves up or down. However, these, like other leveraged or inverse ETFs, incur elevated risks the longer they are held, but with added volatility due to the lack of diversification,” cautioned Todd Rosenbluth, head of research at VettaFi.
TSLQ on Tiger Trade
There has another short ETF of Tesla in the UK market: $-3X TSLA(TSLQ.UK)$
3. Question For You:
What's you understanding to Single-Stock Leveraged / Inverse ETFs?
Do you think these new complex products will carry the dual risk of single-stock exposure and the dangers of a leveraged or inverse position?
Will you planning to invest in $(TSLQ)$?
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