Industry Updates

Leverage Shares cuts fees on Tesla short ETPs to zero ahead of stock split

The ETPs launched last year with initial fees of 0.75%

Jamie Gordon


Leverage Shares cut the fees on its Tesla short exchange-traded products(ETPs) to zero for six months ahead of the electric vehicle manufacturer’s stock split.

The “fee holiday” will apply to the firm's single, double and triple short Tesla ETPs which launched last year with total expense ratios (TER) of 0.75% apiece.

It will last for at least six months until 30 Septemberwith the option for this to be extended, the firm said.

The move also coincides with Tesla’s decision to seek its second stock split in two years – a step often taken by companies following periods of share price appreciation.

Raj Sheth, commercial director at Leverage Shares, commented: “We wanted to make our investors aware that, at this frothy Tesla prices, our short Tesla ETPs can be useful tools to hedge any long-term exposures to Tesla or to profit more tactically from price drops.

“Our 3x Tesla ETP is the most traded ETP on the LSE (by number of trades) but investors should have our full product suite at their disposal and pivot between long and short positions as their conviction dictates.”

The ETPs affected by the change are: 

  • Leverage Shares -3X Short Tesla ETP (TS3S) 

  • Leverage Shares -2X Short Tesla ETP (TS2S) 

  • Leverage Shares -1X Short Tesla ETP (TSLS)

The fee cut follows an active year for the firm, which saw it launch more than 60 short-and-leveraged ETPs in 2021.

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