(TSLL) Direxion Daily TSLA Bull - Ratings and Ratios

The Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL) is a leveraged exchange-traded fund that aims to provide 1.5 times the daily return of Tesla, Inc. (TSLA) stock. The fund achieves this by investing at least 80% of its net assets in TSLA securities and utilizing financial instruments such as swap agreements and options to amplify its exposure.

As a non-diversified ETF, TSLL is heavily concentrated on TSLAs performance, making it a high-risk, high-reward investment. The funds leveraged nature means that it is designed to magnify the daily returns of TSLA, which can result in significant gains or losses. Investors should be aware that the funds returns over longer periods may deviate significantly from 1.5 times TSLAs returns due to compounding effects.

Key performance indicators (KPIs) to monitor for TSLL include its tracking error, which measures the funds ability to achieve its stated objective, and its premium/discount to net asset value (NAV). A high tracking error or persistent premium/discount may indicate inefficiencies or potential issues with the funds management. Additionally, investors should keep a close eye on TSLAs volatility, as it directly impacts TSLLs performance and risk profile.

From a risk management perspective, its essential to consider metrics such as the funds value-at-risk (VaR) and expected shortfall (ES) to gauge its potential downside risk. Furthermore, investors should be aware of the funds liquidity profile, including its average trading volume and bid-ask spreads, to ensure that they can enter and exit positions efficiently.