Here is what you need to know about the new 1.5X Leveraged ETF's....
The Direxion Daily TSLA Bull 1.5X (TSLL) and Bear 1X (TSLS) Shares seek daily investment results, before fees and expenses, of 150% and 100% of the inverse (or opposite), respectively, of the performance of the common shares of Tesla, Inc. (NASDAQ: TSLA). The Funds do not seek to achieve their stated investment objectives for a period of time other than a single trading day. The funds should not be expected to provide 150% or -100% of the returns of TSLA for periods greater than a day.
Here are the tickers you will need to watch out for!
Direxion, a leading provider of tradeable and thematic ETFs, today announced the launch of the first four of its single stock leveraged and inverse ETFs, listing on the NASDAQ, which allow sophisticated traders to obtain magnified or inverse exposure to the daily performance of the common stocks of Apple and Tesla.
Important Information Regarding TSLL
The Direxion Daily TSLA Bull 1.5X Shares (TSLL) seeks 150% daily leveraged investment results and thus will have an increase of volatility relative to the underlying TSLA performance itself. As a result, the fund may be riskier than alternatives that do not use leverage because the fund’s objective is to magnify the daily performance of the common shares of Tesla, Inc. (NASDAQ: TSLA). The return for investors that invest for periods longer or shorter than a trading day should not be expected to be 150% of the performance of TSLA for the period. The return of the fund for a period longer than a trading day will be the result of each trading day’s compounded return over the period, which will very likely differ from 150% of the return of TSLA for that period. Longer holding periods, higher volatility of TSLA and leverage increase the impact of compounding on an investor’s returns. During periods of higher TSLA volatility, the volatility of TSLA may affect the fund’s performance.
Important Information Regarding TSLS
The Direxion Daily TSLA Bear 1X Shares (TSLS) seeks daily inverse investment results and is very different from most other exchange-traded funds. The pursuit of daily inverse investment goals means that the return of the fund for a period longer than a full trading day may have no resemblance to -100% of the return of the common shares of Tesla, Inc. (NASDAQ: TSLA) This means that the return of the fund for a period longer than a trading day will be the result of each single day’s compounded return over the period, which will very likely differ from -100% of the return of TSLA for that period. Longer holding periods and higher volatility of TSLA increase the impact of compounding on an investor’s returns. During periods of higher volatility, the volatility of TSLA may affect the fund’s return as much as, or more than, the return of TSLA. Further, the return for investors that invest for periods longer or shorter than a trading day should not be expected to be -100% of the performance of TSLA for the period.
Investing in the funds involves a high degree of risk. 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. Longer holding periods, higher volatility of TSLA and leverage increase the impact of compounding on an investor’s returns. During periods of higher TSLA volatility, the volatility the funds may be significantly affected.
I will be making more videos and updates about how these ETF's are performing, the volume on these ETF's are still extremely low. So it will be interesting to see how these ETF's will perform in the upcoming months.
More information provided here by Direxion : https://www.direxion.com/product/daily-tsla-bull-and-bear-leveraged-single-stock-etfs