On Thursday, Defiance ETFs unveiled the latest fund to join its roster, the Battleshares TSLA vs. F ETF (ELON), focusing on Tesla and Ford.
ELON is the first fund in a new series of Battleshares ETFs from Defiance. These funds are designed to offer dynamic exposures to some of the market’s most competitive companies. In particular, Battleshares ETFs focus on the rivalries between innovative companies and their legacy counterparts.
This Battleshares fund is actively managed and aims to provide capital appreciation with a long-term time horizon. The ETF operates with a net expense ratio of 1.29%.
Legacy vs. Innovation
The fund’s strategy focuses on two rivaling automakers: Tesla (TSLA) and Ford Motor Company (F). ELON accordingly dials into this rivalry by employing a leveraged & inverse strategy on both companies.
To start, ELON will curate a long position on Tesla, shooting for somewhere between +180% to +220% of its net assets. Meanwhile, the fund creates short exposure to Ford, between -80% to -120% of net assets.
In order to create this long and short exposure, ELON uses a mix of different investment instruments. This includes direct equity investment, swaps, short sales, and options. Additionally, ELON will hold short-term United States Treasury securities to facilitate collateral for the derivatives instruments.
As a Battleshares ETF, ELON is built for investors that want to bet on disruptive companies outpacing their competitors. In doing so, the fund may be an attractive choice for advisors and traders who are bullish on Tesla and bearish on Ford.
“We are thrilled to introduce Battleshares™ ETFs, starting with ELON,” added Sylvia Jablonski, Chief Executive Officer & CIO of Defiance ETFs.. “This suite is designed to empower investors with strategic tools that harness industry disruption and market evolution.”
Defiance ETFs currently has more than 20 funds listed in the United States. These funds amount to over $4 billion in assets under management.
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