Defiance Launches TSLA vs F ETF, Pairing Bullish Bets on Tesla with Bearish Bets on Ford
Defiance ETFs debuted the Battleshares TSLA vs F ETF on Thursday, marking the inaugural fund in a series that combines leveraged long positions on innovative companies with bearish bets on their traditional industry peers.
This ETF offers a 200% upside exposure to Tesla, the electric car giant, while providing a 100% downside protection against declines in Ford's shares.
"Pairs trades," explains Sylvia Jablonski, CEO of Defiance, "are available to professional traders and institutions, but this is the first time they've been packaged into an ETF."
Defiance intends to roll out additional Battleshares ETFs, each pairing a bullish bet on a "new leader" with a bearish bet on a legacy company. Examples include Nvidia vs. Intel, Coinbase vs. Wells Fargo & Co, and Amazon vs. Macy's.
The next ETF launch could occur next week, contingent on investor interest in the Tesla vs Ford matchup. Jablonski notes, "Tesla and Elon Musk are dominating headlines, making this a logical starting point to gauge investor appetite for betting on the battles between incumbents and innovators."
However, the ETF incurs a significant 1.29% expense ratio, significantly higher than the industry average of 0.45%.