TSLL ETF aims for 2x Tesla's daily returns but risks long-term losses due to volatility decay.

The Direxion Daily TSLA Bull 2X Shares ETF (TSLL) targets twice Tesla's daily stock returns, making it attractive for short-term traders. However, because it resets leverage daily, TSLL often underperforms Tesla over longer periods, especially during Tesla's high volatility. Large price swings cause a compounding effect called volatility decay, which can erode returns even if Tesla's stock rises overall. TSLL is better suited for short-term tactical trades rather than long-term investments, where simply holding Tesla stock is usually more rewarding.