The GraniteShares YieldBoost TSLA ETF aims to provide high income through a unique strategy, despite a total return of -8.38% for February.
TSYY focuses on current income and exposure to leveraged ETFs, with Tesla Inc. being a key component of its strategy.
GraniteShares manages $8.9 billion in assets and is expanding its innovative ETF offerings, targeting companies like NVIDIA, Coinbase, and Tesla.
The GraniteShares YieldBoost TSLA ETF (NYSEARCA:TSYY) is a unique financial product designed to offer high income potential through a strategy known as YieldBOOST. This approach involves selling options on leveraged ETFs, which typically provide higher premiums than options on individual stocks. The goal is to preserve the net asset value by writing “out of the money” options, an improvement over traditional “covered call” strategies that often prioritize income at the expense of total return and can limit upside potential while exposing investors to downside risks.
Despite its innovative approach, TSYY reported a total return of -8.38% for February, even though it boasted an impressive annualized distribution of approximately 160.59%. The ETF went ex-dividend on February 28, 2025. This underscores the challenges of balancing high income potential with total return, especially in volatile markets. The fund’s primary objective is to seek current income, while its secondary objective is to gain exposure to the performance of exchange-traded funds aiming for daily leverage investment results of 200% of the daily percentage of Tesla Inc.’s common stock.
GraniteShares, the firm behind TSYY, is a global investment company managing $8.9 billion in assets. Known for its innovative ETF offerings, GraniteShares targets companies like NVIDIA, Coinbase, and Tesla. TSYY is the first ETF in GraniteShares’ YieldBOOST lineup, with more products expected to launch soon. This positions GraniteShares as a key player in the ETF market, offering unique strategies to investors seeking both income and growth.
Tesla Inc., a key component of TSYY’s strategy, has seen its stock price fluctuate recently. On March 4, 2025, UBS updated its grade for Tesla to Neutral, maintaining a hold action. At that time, Tesla’s stock was priced at $267.38. Currently, Tesla is trading at $274.82, reflecting a 1.02% increase. The stock’s price has ranged from $267.81 to $278.27 during the day, with a market capitalization of approximately $884 billion and a trading volume of 66.57 million shares.
Tesla’s stock has experienced significant volatility over the past year, with a high of $488.54 and a low of $138.80. This volatility can impact the performance of TSYY, as the ETF’s strategy is closely tied to Tesla’s stock movements. Investors in TSYY should be aware of these fluctuations and consider how they align with their investment goals and risk tolerance.
