TSLZ is designed for making bearish bets on the stock price of Tesla, Inc. through swap agreements. The objective is to obtain daily inverse leveraged exposure equivalent to -200% of the fund's net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to TSLA's daily price movements. As a geared product, the fund is intended as a short-term tactical tool, rather than as a long-term investment vehicle. As a result, returns may deviate from the expected -2x if held for longer than a single day due to compounding. This strategy is high-risk and does not include a defensive position as part of its overall process. It's important to note that the fund could potentially lose money over time, even if TSLA's performance weakens. The fund is expected to hold money market funds, deposit accounts, and short-term debts.
