Within the preliminary flurry of single-stock ETFs hitting the U.S. over the previous month, there was one title that comes up time and again: Tesla . The unstable electrical automobile inventory is likely one of the most closely traded names on Wall Road, and it is in style with extra adventurous retail buyers and hedge funds. That has made it a staple of recent single-stock ETFs. The Tesla funds have confirmed to be a few of the hottest among the many newly-created class of single-stock funds, although they continue to be far much less actively traded in comparison with extra established ETFs. Supply: FactSet Here’s a quick overview of those new methods to wager on Tesla. Buyers ought to be conscious that these funds have very quick observe data and small property below administration, so there may very well be dangers in leaping into them this early. Levering up: There are two funds that permit buyers to get larger publicity to Tesla shares. The most important of those is the Direxion Each day TSLA Bull 1.5x Shares ETF (TSLL) . The fund solely started buying and selling Aug. 9, and has had a number of days when quantity topped a million shares. The fund has about $22.6 million in property below administration, based on FactSet. GraniteShares additionally has a 1.25x Lengthy TSLA Each day ETF (TSL) , although it’s being traded much less continuously. The “Each day” within the title of those ETFs is a key factor for buyers to acknowledge. As a result of these funds rebalance on daily basis, utilizing choices, they could not ship the said relative return if held over longer durations of time. The expense ratios for these funds may reduce into the advantages of being leveraged lengthy. The Direxion fund has a internet expense ratio of 0.97%, whereas the GraniteShares fund is at 1.15%. Betting in opposition to Tesla: The funds that wager in opposition to Tesla have been extra in style within the early weeks of single-stock ETFs. The AXS TSLA Bear Each day ETF (TSLQ) has been probably the most profitable, bringing in additional than $47 million of fund flows in a bit of over a month, based on FactSet. The Direxion Each day TSLA Bear 1X Shares (TSLS) fund and the GraniteShares 1X Brief TSLA Each day ETF (TSLI) have gained much less traction, although they’ve solely been energetic for about two weeks. These funds even have the each day rebalancing considerations that the leveraged-long funds do. The AXS fund, for instance, is down 22.2% since July 14. Over the identical time interval, Tesla is up 24.5%. These funds are additionally comparatively expensive. The AXS fund has an expense ratio of 1.15%. Hedging: Final month, Innovator ETFs launched the Hedged TSLA Technique ETF (TSLH) for buyers who wish to keep away from a few of Tesla’s volatility. The fund, which is able to rebalance quarterly, goals to purchase choices on Tesla and short-term Treasurys in an try to offer a draw back flooring of 10%, which may assist defend buyers throughout a giant pullback. The fund’s use of choices additionally creates a cap on complete features, nonetheless. For the present three-month interval, the cap is about at a bit of greater than 9%. As a result of Innovator’s outlined end result ETFs, together with the Hedged TSLA fund, use choices and do not maintain the underlying inventory, their returns can deviate from the anticipated return earlier than the top of their said end result interval. The Hedged TSLA Technique ETF has not completed its first quarter but, so it has little observe document to guage at this level. It has an expense ratio of 0.79%, and about $2.6 million in property.