TSLQ offers 2x daily inverse exposure to TSLA, but is best suited only for single-day trades due to significant value decay risks. Holding TSLQ longer than one day can lead to amplified losses and compounding value decay, making it inappropriate for long-term investors. The fund uses both CFDs and TRSs to increase exposure to TSLA shares, potentially increasing the cost and risk of ownership over long periods of time.
Both TSLY and TSLQ ETFs are deeply flawed, with TSLY's capped upside and TSLQ's compounding and market volatility risks leading to underperformance. A combined strategy of TSLY and TSLQ to mimic a -100% TSLA position is ineffective due to TSLA's volatile nature and the ETFs' structural flaws. For bearish TSLA positions, consider direct methods like shorting shares or buying puts instead of using TSLY and TSLQ.