New Tesla, Nvidia ETFs Offer 200% Leverage

Rex Shares and Tuttle Capital Management have introduced four funds that push the limits of single-stock ETFs.

Jeff_Benjamin
|
Wealth Management Editor
|
Reviewed by: etf.com Staff
,
Edited by: Mark Nacinovich

If aggressive trading is your thing, the combined efforts of Rex Shares and Tuttle Capital Management are laying down the welcome mat with four new ETFs that offer hyper-levered single-stock exposure. 

In true boutique-ETF-issuer style, the firms have combined forces to push the limits in the single-stock category with funds going 200% long and short the shares of electric-car maker Tesla and chip maker Nvidia

The Thursday launch of the new T-Rex line of funds includes T-REX 2X Long Tesla Daily Target ETF (TSLT), the T-REX 2X Inverse Tesla Daily Target ETF (TSLZ), the T-REX 2X Long NVIDIA Daily Target ETF (NVDX) and the T-REX 2X Inverse NVIDIA Daily Target ETF ( NVDQ). 

At two times leverage, the new ETFs reach the limit of what the Securities and Exchange Commission allows, which is exactly where the backers behind the new line of exchange-traded funds want to be. 

Leveraged ETFs for Niche Traders

“There’s a bigger picture here,” said Scott Acheychek, chief executive of Rex Shares, a $3 billion asset-management firm that launched its first ETF earlier this month. 

Because ETFs offering leveraged or inverse exposure represent just 1% of the $7 trillion ETF market with the majority in the products that offer the most leverage for a given underlying investment, Acheychek sees nothing but upside potential.

“This is for niche traders, and traders demand leverage,” he said. 

Nate Geraci, president of The ETF Store, described the T-Rex funds as “interesting on several fronts,” especially because the SEC only recently became comfortable with that much leverage applied to a single-stock ETF. 

“The debut of these ETFs could open up the floodgates to other issuers pursuing higher octane single stock strategies,” he said.  

Single-Stock ETFs Push Limits 

The first single-stock ETFs have been on the market for only 16 months, and Geraci said issuers are just scratching the surface in terms of creative potential. 

“While most of the flows have gone into just a handful of products, it still shows the potential in this space overall,” he said. “The collaboration between Rex Shares and Tuttle Capital is also noteworthy.” 

Matthew Tuttle, CEO of Tuttle Capital Management, described the partnership with Rex Shares as “a one plus one equals four type of relationship.” 

"This collaboration is more than just a partnership; it's a fusion of a shared vision and unparalleled expertise in the ETF market,” he added. 

Tuttle Capital manages $325 million across 11 ETFs, including such creative strategies as the Tuttle Inverse Cramer Tracker ETF (SJIM), which bets against stocks favored by CNBC host Jim Cramer. 

The T-Rex product, which is expected to expand beyond the Thursday launch, will operate under the Tuttle registered investment advisor, which includes sales and trading.  

“I like the idea of smaller issuers combining their marketing and distribution muscle in an effort to compete with larger issuers,” said Geraci. 

2 Hot Stocks

In terms of the timing of the ETFs, it gives traders souped-up exposure to two of the hottest stocks this year. 

Tesla stock was down 9% in midday trading Thursday after a disappointing earnings report, but the share price is still up more than 95% from the start of the year. 

Nvidia, as a popular artificial-intelligence play, has seen its stock gain nearly 190% from the start of the year. 

The T-Rex funds come just a month after Direxion’s launch of Tesla and Nvidia single-stock ETFs offering 1.5 times leveraged long and inverse exposure. 

Asked why the market needs single-stock ETFs offering 200% leveraged and inverse exposure when 150% is already available, Tuttle said the market will always want more. 

“If you can already get ‘7-minute abs,’ you will want ‘6-minute abs,’” he said.  

Contact Jeff Benjamin at [email protected] and find him on X at @BenJiWriter.  

Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.


Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.


Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.