TSLL becomes first $1 billion single stock ETF

On Friday, the Direxion Daily TSLA Bull 1.5X Shares (TSLL) became the first single-stock U.S.-listed ETF to reach $1 billion in assets under management. It’s a remarkable feat for an exchange-traded fund that was just established a little over a year ago, and only had $168 million in assets under management at the start of 2023. The success of TSLL can be attributed to a mix of Tesla’s stock’s quick price growth since the year’s beginning and the ETF’s robust capital inflows. $594 million has been invested in TSLL by investors since it began operations on August 9, 2022. Since then, the price of the ETF has decreased by 17.6% (as opposed to TSLA, which has increased by 1.5%).

However, compared to TSLA’s own growth of 166%, it has increased by a staggering 291% since the low point on January 3. Tesla stock has recovered some of the enchantment that characterized its rapid ascent in 2020 and 2021 after losing roughly three-quarters of its value between November 2021 and December 2022. Strong vehicle sales, adoption of its EV charging technology by rivals, anticipation of the company’s Cybertruck and Robotaxi have all contributed to this year’s bullish Tesla narrative. The rapid rise of TSLL is encouraging for the single-stock ETF category. An ETF targeting the right stock at the right time can attract a lot of demand from the aggressive short-term traders that these products are designed for. Nevertheless, there aren’t many stocks that meet those requirements. Tesla is a special stock with cult-like support. It won’t do to have an ETF linked to simply any stock that happens to be rising.

Risk Disclaimer:

Please note that this article does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.