Direxion Daily TSLA Bull 2X
TSLL (NASDAQ)
The Direxion Daily TSLA Bull 2X ETF (TSLL), recognized for its aggressive leverage on Tesla, has recently been highlighted in mid-cap watchlists from January 9-11. With a challenging one-year return of -30.04% and a five-year return of -21.72%, investors should approach this fund cautiously, particularly given the high implied volatility at 90%. The current outlook suggests a 90% chance of continued decline, making it ill-suited for long-term holding due to its heightened risk profile and severe reactions to market movements.
Pros:
- Potential for high returns due to leverage
- Quarterly dividends
Cons:
- High volatility and risk
- Negative 1-year return
The Direxion Daily TSLA Bull 2X ETF (TSLL) may appeal to short-term traders seeking to capitalize on Tesla's volatility; however, its significant losses over the past year and five years indicate heightened risk. Given its aggressive leverage and the current market outlook, this investment is generally unsuitable for risk-averse investors or those with a long-term horizon.