Latest news with #TSLL
Yahoo
2 days ago
- Business
- Yahoo
Traders Buy the Dip in TSLL as Tesla Stock Tanks
Shares of Tesla Inc. (TSLA) plunged 14% on Thursday in a brutal session that sent shockwaves through the leveraged Tesla ETF universe. The Direxion Daily TSLA Bull 2X Shares (TSLL) dropped a whopping 28.5% during the session, its second-worst day ever. You might expect investors to flee after a wipeout like that, but instead, they piled in. A combined $140 million flowed into the 18 U.S.-listed Tesla-focused ETFs on Thursday. Nearly all of that went into TSLL, which hauled in $142 million despite its double-digit drop. The surge in assets suggests dip-buyers are doubling down on the long side, betting on a rebound in Tesla shares. TSLL has now seen a whopping $3.1 billion in inflows year to date, bringing its total assets to just over $4 billion. That's down from a peak of more than $7 billion in May, reflecting steep price losses. So far this year, TSLL is down 60%, more than double Tesla's 25% decline. Far behind in Thursday's inflows tally was the YieldMax TSLA Option Income ETF (TSLY), which pulled in $6 million. That brought its year-to-date inflows to $514 million and pushed its total assets to $950 million, making it the second-largest Tesla ETF in the U.S. TSLY sells covered calls on Tesla stock to generate income, trading upside potential for monthly yield. While that strategy cushions some downside, the ETF is still heavily exposed to Tesla's share price. Year to date, the fund is down 21%, a bit better than Tesla's 25% slide. Interestingly, the big winner on Thursday—the Tradr 2X Short TSLA Daily ETF (TSLQ), which gained nearly 29%—lost assets. Investors pulled $2.5 million from the bearish fund, suggesting traders weren't eager to press short bets after the drop. Still, TSLQ has taken in $255 million so far this year and now manages around $480 million, making it the third-largest Tesla-focused | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Automotive
- Yahoo
TSLL, TSLQ See Big Swings as Musk/Trump Rift Escalates
Shares of Tesla Inc. (TSLA) plunged Thursday as tensions between CEO Elon Musk and President Donald Trump spilled into public view, shaking investor confidence in one of the market's most volatile stocks. Tesla was down nearly 9% midday after President Trump expressed frustration with CEO Elon Musk over his criticism of the administration's flagship tax bill. Speaking to reporters at the White House, Trump said he was 'very disappointed' in the Tesla chief. The bill in question—which passed the House and is now being debated in the Senate—includes both tax cuts and spending reductions but is still expected to significantly increase the federal deficit. Musk has been vocal in his opposition, calling the legislation fiscally irresponsible. He also flagged the proposed elimination of electric vehicle and solar tax credits, which could dent demand for Tesla's cars and energy products. 'Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill,' Musk posted on X. Trump, for his part, claimed Musk's outrage stems from the loss of the tax credits, as well as Trump's decision to block Musk's preferred candidate to lead NASA. The sharp war of words is a remarkable turn for a relationship that once resembled a political "bromance." Musk spent an estimated $200 million to $300 million helping to elect Trump and republicans during the 2024 campaign—a fact he reminded followers of in a pointed post Thursday. 'Without me, Trump would have lost the election,' Musk declared. That kind of rhetoric may not sit well with Trump—or with Tesla investors already nervous about the company's trajectory. Some may be selling on fears that Musk's fraying relationship with the White House could complicate Tesla's regulatory path, particularly in areas like autonomous vehicles. That's a concern for investors who've increasingly pinned their hopes on robo-taxis and humanoid robots to justify Tesla's lofty valuation. The company's core EV business has struggled over the past year, and its brand has taken a beating among Democrats due to Musk's growing involvement in partisan politics. Now, there's a risk of alienating Republicans, too. The Direxion Daily TSLA Bull 2X Shares (TSLL) cratered 18% midday Thursday, while the Tradr 2X Short TSLA Daily ETF (TSLQ) rallied by a similar | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
Active Management Lives On in ETFs After $1 Trillion Asset Haul
(Bloomberg) -- Total assets held by actively run ETFs in the US have hit the $1 trillion milestone, as investors sink cash into a new generation of strategies — shaking up the passive reputation of this booming corner of money management. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. Paris Votes to Make 500 More Streets Car-Free A combination of market gains and inflows carried total assets over the trillion-dollar landmark this week, according to Bloomberg data. While classic index-tracking funds dominate the trading landscape, demand for the tax-efficient wrapper is ramping up across ETFs that allow managers to deviate from the benchmark for additional returns. Cash is flying into funds riding everything from vanilla fixed income and structured credit, to crypto and leveraged stock trades. Investors continue to exploit the industry's fiscal and liquidity advantages in the ETF-for-everything era. The balance of power remains with benchmark-hugging strategies with their assets totaling $9.6 trillion. But active funds are playing catch-up, attracting $112 billion so far this year compared with passive's $175 billion. 'Active ETFs are now being embraced the same way that index-tracking ETFs were when they first launched,' said Amrita Nandakumar, president of ETF sub-adviser Vident Asset Management. 'It is a role-reversal from mutual funds, which started off actively managed until John Bogle launched the first S&P 500 mutual fund in the late 70s.' Derivatives-powered strategies have led new debuts in the category, with 54% of the launches in February utilizing them in some way or form, data compiled by Bloomberg Intelligence show. Retail favorites include strategies such as double leveraged single-stock, so-called return-stacking and managed futures. This year, nearly $5 billion alone rushed into Janus Henderson's ETF tracking collateralized loan obligations (ticker JAAA), fueled by investors seeking exposure to floating rates. JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and Direxion Daily TSLA Bull 2X Shares (TSLL) took in $3 billion each. 'It's not just confidence in the manager themselves, but confidence in the ETF wrapper,' said Matthew Bartolini, head of Americas ETF research at State Street Global Advisors. 'And that a manager's active strategy, whether implemented by traditional or non-traditional approaches, has the potential to fully translate into an ETF structure that had previously just been used for indexed-based approaches.' The biggest players in the active space are Dimensional Fund Advisors LP, JPMorgan Chase & Co. and First Trust, which command north of $400 billion combined. Still, smaller players are also contributing to growth, according to Jillian DelSignore, global head of investor distribution strategy at Nasdaq Global Index Group. 'There is a sustained trend of new issuers entering the market, introducing compelling active-based products that ultimately offer market participants greater choice in their investments,' she said. Meanwhile active stock mutual funds — which typically come with higher fees and have famously underperformed their benchmarks over the years — have been hit by constant outflows in a zero-sum game between the two products. 'Active ETFs will continue to grow, but are unlikely to overtake passive ETFs because active managers still struggle to beat their passive peers on average,' said Bryan Armour, director of passive strategies research at Morningstar Inc. 'Still, ETFs offer a new opportunity for active managers and declining fees should increase their odds of success.' Business Schools Are Back Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
19-03-2025
- Automotive
- Yahoo
Leveraged Tesla ETFs Make Big Moves Amid Epic TSLA Stock Skid
Tesla Inc. (TSLA) is on a historic losing streak, falling for eight consecutive weeks—the longest in the company's history. Could this week make it nine in a row? While Tesla investors are licking their wounds, things are even worse for those holding leveraged Tesla ETFs. Shares of Tesla have lost half their value since peaking in December 2024, but the Direxion Daily TSLA Bull 2X Shares (TSLL) has plummeted 80% during the same time frame. On the flip side, inverse Tesla ETFs have surged. The Tradr 2X Short TSLA Daily ETF (TSLQ) has nearly tripled since Tesla's peak, benefiting from the stock's downward trajectory. TSLL and TSLQ are the largest and third-largest Tesla-related ETFs in the U.S., respectively, with $2.9 billion and $324 million in assets under management. But they are just two of the 17 Tesla-related ETFs in the U.S., which collectively hold $4.8 billion in AUM. Including TSLL, five Tesla-focused ETFs offer various levels of leverage on the stock. On the inverse side, there are four ETFs designed to short Tesla at different magnitudes. Then, some ETFs employ covered call strategies on Tesla to generate income. The largest is the $840 million YieldMax TSLA Option Income ETF (TSLY), which has declined around 55% since Tesla's peak—slightly more than the stock itself. Using Tesla options to generate income has become a popular strategy, with five such ETFs currently listed in the U.S. One Tesla ETF taking a different approach is the Simplify Volt TSLA Revolution ETF (TESL), which uses options to 'manage downside risks.' However, that strategy hasn't provided much protection lately—TESL is down 53% since Tesla's peak, slightly worse than the stock itself. The following are two smaller, but intriguing, Tesla ETFs. Battleshares TSLA vs. F ETF (ELON): A pair trade that combines a 2x leveraged long position in Tesla with a 1x short position in Ford Motor (F). The fund, which launched a month ago, is already down 63%. STYKd 100% UBER & 100% TSLA ETF (ZIPP): This fund uses leverage to combine positions in both Tesla and Uber Technologies Inc. (UBER). It launched earlier this month and is already down 19%. Tesla's ongoing decline has put immense pressure on leveraged long ETFs while providing a windfall for inverse ETFs. With Tesla teetering on its ninth-straight week of losses, investors in these funds will be watching closely to see if the trend reverses—or if the selloff | © Copyright 2025 All rights reserved
Yahoo
07-03-2025
- Automotive
- Yahoo
Leveraged Tesla ETF Pulls in the Bulls Despite Big Drop
As Elon Musk's political activities and Tesla Inc.'s (TSLA) sales slump drive the electric-vehicle maker's stock down nearly 30% year to date, a surprising trend has emerged: Investors are aggressively buying the dip through a leveraged Tesla ETF. Despite a punishing 54% year-to-date loss for the Direxion Daily TSLA Bull 2X Shares (TSLL), the leveraged Tesla bull fund continues to attract billions in new funds, revealing traders likely believe that the company's current challenges are temporary rather than structural. The exchange-traded fund has lost nearly half its value in just the past month, reflecting Tesla's 28.7% stock decline in the same period. Yet, investors can't seem to stop pouring money into it. TSLL, which aims to deliver twice the daily performance of Tesla stock, has attracted $1.3 billion in inflows over the past month and $2 billion year to date, even as the ETF has suffered a crushing 47.1% monthly loss and nearly 54% decline year to date, according to data. "We tend to see inflows with our 2x daily TSLA Bull (TSLL) when we get pullbacks in the stock like we are experiencing currently with Tesla," according to Ed Egilinsky, managing director at Direxion. "Our Leveraged and Inverse ETFs are designed for short term/active trading, and some traders believe that TSLA will reverse higher." The continued inflows come as Tesla faces multiple headwinds. The company is dealing with slowing sales globally, with European deliveries falling 50% year over year in January, Politico reported. In Germany, Tesla's sales crashed by 60% while overall EV sales surged by more than 50%. "Since TSLL had inflows and TSDD had outflows last week, the data indicate that some traders are trying to buy the dip," according to Aniket Ullal, senior vice president and head of ETF research and analytics at CFRA. "They may believe TSLA is oversold." While TSLL attracts billions, the GraniteShares 2x Short TSLA Daily ETF (TSDD), which bets against Tesla's stock, has seen $13.1 million in outflows over the past month despite posting strong gains of 69.2% in that period and 74.2% year to date. "Investors are betting on a TSLL rebound after a sharp 30% decline in Tesla stock," said Noah Damsky, principal at Marina Wealth Advisors. "Investors have been conditioned to bet on a bounce back in stock prices, especially mega-cap tech stocks, given how well the market has performed over the last 10+ years." The company faces increasing competition from electric vehicle makers in China and Europe, while CEO Elon Musk's political activity has alienated some customers and investors. "There is currently a lot of volatility and downside pressure on Tesla stock with consumer spending weakening, uncertainty with tariffs, increasing competition with EV makers and a slowdown in their deliveries," Egilinsky explained. "The polarizing figure of Musk himself and mixed investor sentiment surrounding his involvement with the current administration could also be impacting the stock." Despite these challenges, several market watchers see potential for recovery. CFRA's analysts believe Tesla's stock decline primarily reflects already-known sales challenges, Ullal said, and the company has less tariff exposure than competitors. They also anticipate that upcoming U.S. autonomous driving regulations could provide a positive catalyst for the stock. The long-term outlook for Tesla extends beyond its current vehicle lineup. Damsky pointed to multiple future growth drivers, including "battery storage, solar and robo-taxis/autonomous driving," noting that these ambitious projects keep many investors focused on future potential rather than present valuation | © Copyright 2025 All rights reserved
