GraniteShares 2x Short TSLA Daily ETF

Frequently Asked Questions About TSDD

What does TSDD invest in?

TSDD is a short-term tactical tool that aims to deliver -2x the price return, less fees and expenses, for a single day of Tesla stock. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the -2x multiple. Aside from the inverse leverage exposure, compared to traditional ETFs, the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending, and holders are on the positive corresponding side of that trade. However, the shares provide the advantage of capping the maximum loss to the full amount invested. Prior to January 22, 2024, the fund traded under the name GraniteShares 1.5x Short TSLA Daily ETF.

What is the expense ratio of TSDD?

GraniteShares 2x Short TSLA Daily ETF (TSDD) charges an expense ratio of 1.13%. This is the annual fee deducted from fund assets to cover management and operations.

Is TSDD a good long-term hold?

TSDD is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does TSDD's daily reset work?

TSDD rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is TSDD?

GraniteShares 2x Short TSLA Daily ETF (TSDD) manages $30.9M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is TSDD actively managed or an index fund?

TSDD's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.