Share-split context: A reverse split was recorded on Jan 13, 2025 with coefficient 0.05. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

GRANITESHARES 2X SHORT TSLA DAILY ETF (TSDD)

What this ETF is trying to do:

The GRANITESHARES 2X SHORT TSLA DAILY ETF (TSDD) aims to provide investors with a way to profit from the daily decline of Tesla's stock price. It uses leverage, meaning it tries to double the daily return of shorting Tesla shares.

What the numbers show:

• Current Price: $7.11

• Year-to-date (YTD) Price Return: -8.02%

• One-Year Price Return: -31.04%

• Three-Year Price Return: -98.18%

The ETF has experienced significant price declines over the past year and three years, showing a substantial drop in its market value.

Income and distribution explanation:

TSDD pays out distributions irregularly, with only one payout recorded in the last 12 months. The distribution yield is currently at 9.16%, which seems high but doesn't mean it's sustainable or that it covers price losses.

NAV erosion explanation:

The ETF has a significant price erosion score of 30 and a severity level marked as "significant." This means the market price has dropped considerably, even though we don’t have enough historical NAV data to confirm if this is due to actual NAV erosion.

Pros:

• High Distribution Yield: The high distribution yield can be attractive for income-focused investors.

• Daily Profit Potential: If Tesla's stock falls daily, TSDD offers a way to profit from that decline.

Cons:

• Significant Price Decline: Over the past year and three years, the ETF has seen significant price drops, indicating poor performance.

• Irregular Distributions: The irregular distribution schedule can make it harder for investors to plan their income needs.

• High Erosion Risk: The severe erosion risk flag indicates that there is a high risk of further price declines.

Beginner takeaway:

The GRANITESHARES 2X SHORT TSLA DAILY ETF (TSDD) offers the potential for significant daily returns if Tesla's stock falls, but it comes with substantial risks. Its current price has dropped significantly over recent years, and while it pays a high distribution yield, this doesn't necessarily mean it will protect your investment from further losses. Always be cautious when investing in leveraged ETFs like TSDD, as they can be very volatile and risky.