Bid to Launch ETFs That Aim to Double Tesla’s Famous Volatility Filed With SEC

A long-shot bid to launch double-leveraged, single-stock exchange-traded funds tracking the notoriously volatile Tesla Inc. has been filed with US regulators after past attempts have failed.

The T-Rex 2X Long Tesla Daily Target ETF would trade under the ticker TSLT and use derivatives to track twice the daily returns of Elon Musk’s electric-vehicle maker, according to a Tuesday filing. Its sister fund, the T-Rex 2X Inverse Tesla Daily Target ETF, would trade under the ticker TSLZ and follow the reverse performance of Tesla stock by the same magnitude.

If launched, TSLT and TSLZ would be the first double-leveraged Tesla-focused single-stock ETFs to trade in the US market. Previous attempts ended up lowering the leverage amount during the regulatory review, Bloomberg reported last year. So far, the highest leverage available on a single-stock Tesla fund is 1.5 times.

“We think we have figured out a way to get to 2x, but if asked to dial back, it would just depend on how much,” Matthew Tuttle of Tuttle Capital Management, which along with REX Shares applied to create the ETFs, said in an email.

We “want to be different than what’s out there — launching the exact same thing doesn’t seem to make a ton of sense,” said Tuttle, who is behind ETFs that short Cathie Wood’s equity bets and follow CNBC anchor Jim Cramer’s stock picks.

In addition to the Tesla ETFs, Tuttle and REX Shares also applied for funds that track the performance of chipmaker Nvidia Corp. — the T-Rex 2x Long Nvidia Daily Target ETF and the T-Rex 2x Inverse Nvidia Daily Target ETF.

All four ETFs would carry a 1.05% management fee.