By Suzanne McGee
(Reuters) – Defiance ETFS launched Exchange Trading Fund (ETF), the Battlesshares Tsla Vs F ETF, on Thursday, the first group matching bullish bets on innovative companies with bearish ones on their traditional counterparts in the industry.
The new ETF matches a long -stimulated holding at the electric car maker Tesla, offering investors a 200% upside down stock, with a job that will pay 100% of any deterioration to investors in Ford's shares.
Investors can already use single stock ETFs delested to bet on where they think individual companies' shares like Nvidia and Tesla are going. This is the first attempt to combine two different stocks and two different directional bets in one product.
“Pairs crafts, as these are called, exist for professional traders and organizations but are not accessible in ETF,” said Sylvia Jablonski, CEO of Defiance, a company that already has a series of single ETFs single Leverage on the market.
All of the lineup of Battleshares ETFs that Jablonski hopes to launch will correspond to a bullish bet triggered on a “new leader” as Tesla, with one bearish on the legacy company, as ETFs twinning Nvidia with Nvidia with Nvidia with Intel, Coinbase with Fargo & Fargo Fountains & Co. and Amazon with Macy's.
The next ETF launch may come as early as next week, Jablonski said, if investors show interest in Tesla's game against Ford.
“Tesla is in the news a lot now, and so was Elon Musk, so we thought this was a logical product to experience the concept of investors can invest in the Battle of Incumbent against a pioneer.”
The ETF carries a hefty fee 1.29%, well above the 0.45% average calculated by Morningstar.
(Reported by Suzanne McGee; Edited by Jacqueline Wong)