Press release
The GraniteShares YieldBoost TSLA ETF (TSYY) Yielded an Annualized Distribution of Approximately 35% Generating a 7.9% Total Return. TSYY Went Ex-Dividend on January 24, 2025
Since its inception on December 17, 2024, and until the ex-date, TSYY generated a positive total return. During the same period Tesla (TSLA) was down 14.1%.New York, New York - February 4, 2025 - YieldBOOST [https://graniteshares.com/institutional/us/en-us/] is an innovative strategy that aims to combine high income potential by selling options on leveraged ETFs which generally command a higher premium than options on stocks, while focusing on NAV preservation by writing options which have a lower chance of being exercised ("out of the money" options). GraniteShares [https://graniteshares.com/institutional/us/en-us/] believes that this holistic approach is an improvement over existing option income strategies mainly known as "covered call" strategies.
The fact that TSYY was able to generate a positive total return over the same period the TSLA stock price was significantly down, illustrates the robustness of the YieldBOOST approach developed by GraniteShares.
The main problem with covered call strategies is that they prioritize income or yield over total return. With a covered call, the options seller typically sells "at the money" which enables the seller to generate the maximum amount of premium at the point of sale. An option is considered at-the-money when the strike price is very close to the current market price of the underlying asset.
This approach encompasses the problem that the option has a much higher chance of being exercised if the value of the underlying asset goes up, hence capping the upside. If the underlying asset falls in value, the strategy is fully exposed to the downside. The main design flaw with covered call strategies can be a nice yield but poor total return and therefore a poor investment long term.
TSYY is the first ETF in GraniteShares' YieldBOOST lineup, and additional YieldBOOST products are expected to come to market over the coming months. The fund's primary investment objective is to seek current income. The fund's secondary investment objective is to seek exposure to the performance of one or more exchange-traded funds whose shares trade on a U.S.-regulated securities exchange and that seek daily leverage investment results of 2 times (200%) the daily percentage of the common stock of Tesla Inc. (NASDAQ: TSLA) (the "Underlying Stock") subject to a limit on potential investment gains.
About GraniteShares:
GraniteShares is an award-winning global investment firm [https://graniteshares.com/institutional/us/en-us/] dedicated to creating and managing ETFs. Headquartered in New York City, GraniteShares provides products on U.S., U.K, German, French & Italian stock exchanges. The firm is a market leader in leveraged single-stock ETFs and provides innovative, cutting-edge investment solutions for the high conviction investor.
Founded in 2016, GraniteShares is an ETF provider focused on providing innovative, cutting-edge alternative investment solutions. Its U.S. ETF offerings include a broad-based commodity index fund, physically backed gold and platinum funds and a high-income pass-through securities index fund.
GraniteShares also offers a suite of leveraged single stock ETFs, including those targeting NVIDIA, Coinbase and Tesla. The company has $8.9 billion in assets under management as of January 24, 2025.
For complete information about the GraniteShares YieldBOOST TSLA ETF (TSYY), please visit: https://graniteshares.com/institutional/us/en-us/
Link to Prospectus: https://graniteshares.com/institutional/us/en-us/etfs/tsyy/
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Disclaimer
IMPORTANT INFORMATION:
This material must be preceded or accompanied by a Prospectus. Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. Please read the prospectus before investing.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.
An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as option contracts and swaps are subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include Risk of the Underlying ETF, Derivatives Risk, Affiliate Fund Risk, Counterparty Risk, Price Participation Risk, Distribution Risk, NAV Erosion Risk, Put Writing Strategy Risk, Option Market Liquidity Risk. These and other risks can be found in the prospectus.
This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Please consult your tax advisor about the tax consequences of an investment in Fund shares, including the possible application of foreign, state, and local tax laws. You could lose money by investing in the ETFs. There can be no assurance that the investment objective of the Funds will be achieved. None of the Funds should be relied upon as a complete investment program.
Media Contact
Company Name: GraniteShares Inc.
Contact Person: Media Relations
Email: Send Email [http://www.universalpressrelease.com/?pr=the-graniteshares-yieldboost-tsla-etf-tsyy-yielded-an-annualized-distribution-of-approximately-35-generating-a-79-total-return-tsyy-went-exdividend-on-january-24-2025]
Phone: 844-476-8747
Address:222 Broadway, 21 Floor
City: New York
State: NY, 10038
Country: United States
Website: http://graniteshares.com/institutional/us/en-us/
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