8 Single Stock Leveraged ETFs [Brand New]
Traders and investors utilize plenty of tricks to beat the stock market's overall performance. For this purpose, leveraged exchange-traded funds fit into the category. An ETF tracks the stock market and underlying asset class index and utilizes debt to boost the fund's return. For retailing, there are plenty of leveraged strategies used in the global industry. If you want to capture additional returns, try out these strategies.
Eight New Leveraged Single-Stock ETFs
Leveraged ETFs are one of the best-considered tools in the trading market. To help you land practical, effective, and suitable, here we have mentioned some worthy leveraged ETFs:
AXS TSLA Bear Daily ETF (TSLQ)
If you are facing short-term bearish on TSLA on the Nasdaq index, do not worry. Fortunately, it now offers a distinct ETF with the ticker TSLQ that empowers traders with a broader view. This ETF is part of the AXS single stock ETF family belonging to TESLA that seeks reversed investing results depending on the daily performance of a single stock.
TSLQ is a short-term analytic tool that strives to offer -1 times price return with fewer expenses and fees for one day of TESLA stocks. Buyers' firm shares for longer than 24 hours will need to monitor and rebalance their position in order to achieve a -1 time.
Compared to traditional leveraged ETFs, the TSLQ exchange-traded fund takes on added volatility due to a lack of diversification. TSLQ ETF strives to show daily investment results that are inverse of the daily exposure and performance of the ordinary TESLA shares.
AXS 1.25X NVDA Bear Daily ETF (NVDS)
Nvidia is a well-known U.S multinational company that recently stepped into the world of investing and trading with much power. Due to a lack of interest and expertise, you might be facing a short-term bearish view. Hence, it offers ETFs to analyze the daily performance of stocks.
AXS 1.25X NVDA Bear Daily ETF with ticker is a glimpse of their advancement. It was recently listed on July 14 with strong optimal factors. It offers daily investment results corresponding to 1.25X, the inverse of the everyday fluctuation of the typical NVIDIA corporation's shares.
Compared to traditional leveraged ETFs, it is pretty easy and affordable to manage. Its price is not more than 0.95% management fee. However, its gross expense ratio is 1.57%. NVDS net expense ratio falls to 1.15% to benefit buyers without witnessing a loss in the financial market index.
AXS 1.5X PYPL Bear Daily ETF (PYPS)
Investors and traders wishing to have a broader vision due to the short-term bearish view on PayPal holdings should turn to the fund with the PYPS ticker. It gives a broader vision to expect 1.5 times return on daily investment. PYPS is a beneficial fund for those who intend to use it as a short-term trading tool and investors who comprehend the benefit and risk of these reversed or leveraged funds and stocks.
PYPS is a well-known but newly leveraged, and inverse exchanged traded fund that offers daily investment results to ensure 1.5 times the reverse that helps cap maximum industry loss. The standard holding PayPal listed this fund to give a vision of the expected average trend.
It is an affordable ETF with only a 0.95% average management fee. This leveraged ETF is generally distributed annually, whose gross expense ratio reaches 1.57%. PYPS ETF holds only a 1.15% net expense ratio which is significantly low compared to similar leveraged ETFs.
AXS 1.5X PYPL Bull Daily ETF (PYPT)
Leveraged single-stock exchange-traded fund surges after PayPal, listed as PYPL on the Nasdaq index, caught the attention of activist investors. However, PYPT has ranked among the best performing non-leveraged ETFs.
The PYPT reflects the everyday investment result of 150% compared to the 24 hours performance of the shares of PayPal holding. It belongs to the single stock FTF family that showcases reverse or leveraged investment results based on the daily value of the single stock.
This leveraged fund is traded on the Nasdaq index with a 0.95% management fee. However, the gross expense ratio of PYPT on the Nasdaq index is 1.57%. The annual or net expense ratio can reach 1.15% of the net earnings of the asset. Therefore, if you want to ensure functionality, advantage, and affordability, consider leverage PYPT, a good leveraged option to cap maximum loss in the underlying financial market and industry.
AXS 2X NKE Bear Daily ETF (NKEQ)
It is a unique investing and trading fund seeking daily inverse leveraged investment results. NKEQ is a beneficial fund but may be riskier than alternatives that do not utilize or depend on leverage. The fund's objective is to magnify the reverse 200 on daily performance.
The fund is not suitable for investors but designed for knowledgeable investors who comprehend the potential consequences of everyday inverse leverage. Those not intended to monitor portfolios are not suggested to go for this fund.
For periods longer than 24 hours, ticker NKEQ might lose money if Nike's activity is flat. Moreover, it may cause further loss if the position continues to decline. Similarly, the investor can also lose if the NKE gains more than 50% in one day.
The management of NKEQ is around 0.95% and 0.62% other fees. The investor may also pay brokerage commission and other fees due to financial intermediaries. Hence the net expense ratio can reach 1.15%.
AXS 2X NKE Bull Daily ETF (NKEL)
Many people are always having a short-term bullish view of NKEL. Therefore, Nike has registered some brand-new single-stock leveraged ETFs. These funds, such as NKEL, aim to empower the investors and traders on that view of the market index and cap maximum equity loss.
AXS 2X NKE Bull Daily Leveraged ETF is a daily trend analytic tool that seeks daily investment results. It gets exposure many time periods daily to correspond to the 200% daily performance of typical Nike holding shares. Apart from the leverage, the share takes on adding volatility due to a lack of diversification. Like other single-stock leveraged ETFs, it has a 0.95% management fee with a 1.15% net expenses ratio.
AXS 2X PFE Bear Daily ETF (PFES)
This fund is an asset of pharmaceutical companies in the stocks. It holds 314 exchange-traded funds with 508.7 million shares in the U.S stock market index. Among all, PFES is one of the best Pfizer funds. On the Nasdaq index, it seeks daily investment results corresponding to a 200% reverse of the daily performance compared to common shares of Pfizer holding.
As it is a new fund, it is unsuitable for beginners and those lacking insight into potential risks and benefits. Like other single-stock inverse leveraged ETFs, it has 0.95% general expenses with additional fees like brokerage and intermediary parties. However, the net ratio is expected to be 1.15%, with a 1.57% gross expense ratio, according to class and news.
AXS 2X PFE Bull Daily ETF (PFEL)
For the people dealing with short-duration bullish views on leverage PFEL, Pfizer has registered and set the benchmark for others. They have suggested distinct ETFs that empower you to trade on equities and that view. The AXS single-stock family fund seeks daily investment results expected to correspond to 200% of the daily activity compared to ordinary shares.
The fund is generally traded on the Nasdaq index annually. This ETF is not designed for beginners, but experience and those with deep insight into expected turnovers can highly leverage it. PDF has an almost 0.95 management fee and 1.15% net expense ratio. However, the gross expense ratio can touch 1.57%.
Warnings with Leveraged ETFs
Leveraged ETF offers significant benefits to amplify daily returns. It holds many risks at the same time. Before investing and trading, you should keep some risks associated with leveraged ETF in mind.
A leveraged ETF magnifies daily return and can also result in steep losses in short periods, and a leveraged ETF can lose most of its value.
Restricted Leveraged ETFs
Many leveraged ETFs in the stock market are not traded. It implies that your ability to exercise them in a reverse leveraged ETF is restricted.
Use of Derivatives
Leveraged ETF utilizes different derivatives to boost the return. Hence, they are less likely to track the underlying asset closely.
No Long-term Investment
These finds are not ideal for long-term trading. Over the long-term holdings, ETF does not thoroughly monitor the daily return of the index they track.
Leveraged exchange-traded funds (ETF) is one of the useful tools that utilize financial derivatives such as stocks, options, futures, and debt to boost the underlying index's return. Compared to traditional ETFs, these kinds of funds offer an average of 2:1 or 3:1 security in the underlying asset. However, with benefits, sometimes it also leads to a significant loss, so carefully handle leveraged ETFs and assets.