The Simplify Volt TSLA Revolution ETF, which would trade under the ticker TESL, is taking over the $4 million Simplify Volt RoboCar Disruption and Tech ETF as it seeks to home in on Elon Musk’s company, according to a Tuesday regulatory filing. The fund by Simplify Exchange Traded Funds will hold Tesla stock and derivatives — including futures and swap contracts linked to the car-maker — as well as other ETFs “that have returns linked to” the company.
An aggressive position would offer 150% or 200% exposure, for instance, while defensive would be 25% or 50%, the filing says. As a Tesla-focused fund, TESL’s ability to be tactical could help it stand out from other single-leveraged ETFs investing in the company, said Bloomberg Intelligence’s Athanasios Psarofagis. The ETF is likely to appeal to “Tesla die-hards,” he added.Tesla is known for its dramatic swings. Its 90-day volatility clocks in at about 48, while the S&P 500’s comes in at 12. The stock’s 110% gain so far this year has bolstered ETFs that use leverage to bet on its choppiness. The $1.