During the initial boom of single-stock ETFs to the US over the past month, one name came up over and over again: Tesla. Volatile electric vehicle stock is one of the most traded names on Wall Street, and it’s popular with more retail investors and hedge funds. That has made it a staple of new single-stock ETFs. Tesla’s funds have proven to be among the most popular among newly established single-share funds, although they are still far less actively traded than more established ETFs. . Source: FactSet Here is a brief overview of these new ways to bet on Tesla. Investors should be aware that these funds have a very short track record and small assets under management, so it can be risky to get in so early. Boost: There are two funds that give investors more exposure to Tesla stock. The largest of these is the Direxion Daily TSLA Bull 1.5x stock ETF (TSLL). The fund only started trading on August 9, and there were a few days when trading volume reached one million shares. According to FactSet, the fund has about $22.6 million in assets under management. GraniteShares also has a 1.25x daily TSLA ETF (TSL), although it is being traded less frequently. The “daily” in the names of these ETFs is an important one for investors to recognize. Because these funds rebalance daily, using options, they may not provide the stated relative returns if held for longer periods. The expense ratios for these funds can also undercut the benefits of being leveraged for the long term. The Direxion fund has a net expense ratio of 0.97%, while the GraniteShares fund is 1.15%. Betting against Tesla: Funds that bet against Tesla became more popular during the early weeks of a single-share ETF. The AXS TSLA Bear Daily ETF (TSLQ) is the most successful fund, bringing in more than $47 million in inflows in just over a month, according to FactSet. The Direxion Daily TSLA Bear 1X Shares (TSLS) and GraniteShares 1X Short TSLA Daily ETF (TSLI) funds have gained less traction, even though they have only been active for about two weeks. These funds also have concerns about the daily rebalancing that long-term funds use leverage. For example, the AXS fund has dropped 22.2 percent since July 14. In the same time period, Tesla has grown 24.5%. These funds are also relatively expensive. The AXS Fund has an expense ratio of 1.15%. Hedging: Last month, Innovative ETFs launched the TSLA Hedging Strategy ETF (TSLH) for investors looking to avoid some of Tesla’s volatility. The fund, which will rebalance quarterly, aims to buy Tesla call options and short-term Treasuries in an attempt to provide a floor of 10% off, which could help protect investors during a major pullback. . However, the use of fund options also creates a limit on the total return. For the current three-month period, the limit is set at a little over 9%. Because Innovator determined outcome ETFs, including the Hedged TSLA fund, use options and do not hold the underlying stock, their returns may deviate from previously expected returns. at the end of the stated outcome period. The Hedged TSLA Strategy ETF hasn’t finished its first quarter yet, so it has very little track record to evaluate at this point. It has an expense ratio of 0.79% and about $2.6 million in assets.