TSLL | Daily Tesla Bull 1.5X ETF Direxion short interest and earnings date annual report Mar, 2024 (2024)

FAQs

Can you lose all your money in a leveraged ETF? ›

Leveraged ETFs amplify daily returns and can help traders generate outsized returns and hedge against potential losses. A leveraged ETF's amplified daily returns can trigger steep losses in short periods of time, and a leveraged ETF can lose most or all of its value.

Fund Overview

The YieldMax™ TSLA Option Income Strategy ETF (TSLY) is an actively managed fund that seeks to generate monthly income by selling/writing call options on TSLA. TSLY pursues a strategy that aims to harvest compelling yields, while retaining capped participation in the price gains of TSLA.

Nearly all leveraged ETFs come with a prominent warning in their prospectus: they are not designed for long-term holding. The combination of leverage, market volatility, and an unfavorable sequence of returns can lead to disastrous outcomes.

Since its inception only one year ago, YieldMax ETFs has not demonstrated qualities that as stewards, build confidence. At this stage, the firm earns a Below Average Parent rating.

Finding the best long-term ETFs can help reward you if you buy and hold, allowing you to compound your money over time. Even small differences in returns, just a few percent annually, can create an amazing improvement in your total wealth.

The Bottom Line

A leveraged ETF uses derivative contracts to magnify the daily gains of an index or benchmark. These funds can offer high returns, but they also come with high risk and expenses. Funds that offer 3x leverage are particularly risky because they require higher leverage to achieve their returns.

TSLY Dividend Information

TSLY has a dividend yield of 90.37% and paid $14.40 per share in the past year. The dividend is paid every month and the last ex-dividend date was Apr 4, 2024.

YieldMax TSLA Option Income Strategy (TSLY) has announced a dividend of $0.81 with an ex date of March 06, 2024 and a payment date of March 08, 2024.

Several papers have established that investors who hold these investments for periods longer than a day expose themselves to substantial risk as the holding period returns will deviate from the returns to a leveraged or inverse investment in the index.

What happens if leveraged ETF goes to zero? ›

Because they rebalance daily, leveraged ETFs usually never lose all of their value. They can, however, fall toward zero over time. If a leveraged ETF approaches zero, its manager typically liquidates its assets and pays out all remaining holders in cash.

The reason for this is that the leveraged ETF is designed to provide multiple returns of the underlying asset on a daily basis. The compounding effect of daily returns means that losses in the ETF are magnified over time.

Qualified dividends are taxed at 0%, 15% or 20% depending on taxable income and filing status. Nonqualified dividends are taxed as income at rates up to 37%. IRS form 1099-DIV helps taxpayers to accurately report dividend income.

TSLY's next dividend payment date is on May 08, 2024, when TSLY shareholders who own TSLY shares before May 06, 2024 will receive a dividend payment of $0.69 per share. Add TSLY to your watchlist to be reminded of TSLY's next dividend payment.

While you are not required to repay the leverage itself, you must maintain a sufficient amount of capital in your trading account to cover potential losses. If your account balance falls below the required margin level due to trading losses, you may receive a margin call from your broker.

If you held underlying index XYZ directly and then levered it up three times directly with your broker dealer, the losses could potentially cause your position to fall below zero. In other words, you could potentially be liable for more than you invested because you bought the position on leverage.

The two major risks associated with leveraged ETFs are decay and high volatility. High volatility translates to high risk. Decay emanates from holding the ETFs for long periods.

If investment returns can be amplified using leverage, so too can losses. Using leverage can result in much higher downside risk, sometimes resulting in losses greater than your initial capital investment.