ETF Education Report: GRANITESHARES 1.25X LONG TSLA DAILY ETF (TSL)

What this ETF is trying to do

This ETF, known by its ticker symbol TSL, is an exchange-traded fund listed on the NASDAQ. Based on its name, it is designed to track the daily performance of Tesla (TSLA) with a 1.25x multiplier.

What the numbers show

The current price of one share is $14.51. To understand how the price has changed, we can look at several different timeframes:

• Year-to-Date (YTD) Price Return: The share price has decreased by approximately 22.41% since the start of the year.

• One-Year Price Return: Over the last year, the share price has fallen by approximately 20.41%.

• Three-Year Price Return: Over the last three years, the share price has decreased by approximately 23.11%.

When looking at total returns (which include both price changes and any cash paid out), the YTD and one-year total returns match the price returns exactly. However, the three-year total return is 20.42%, which is different from the three-year price return.

Because this ETF does not have a history of stock splits, we can use an estimated price from roughly one year ago, which was approximately $18.23.

Income and distribution explanation

Some investors look for ETFs that pay them cash regularly, known as distributions. For this ETF, the distribution yield is 0%. No distributions were detected over the last 12 months.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets declines. While a falling share price does not always mean the NAV is eroding, we use an "erosion-risk score" to measure this risk.

This ETF has an erosion score of 55, which is labeled as "Moderate price erosion." This indicates a moderate level of risk regarding price deterioration.

Pros

• The three-year total return is positive at approximately 20.42%.

Cons

• The share price has seen declines in the year-to-date, one-year, and three-year price return categories.

• The ETF does not currently provide any cash distributions or income.

Beginner takeaway

When looking at this ETF, it is important to distinguish between price return (how much the share price moves) and total return (the overall result including distributions). For TSL, the short-term price returns have been negative, while the three-year total return has been positive. Additionally, keep in mind that a moderate erosion-risk score suggests the price has experienced some level of decline.