Tesla Vs. Ford: New Defiance ETF Capitalized On Market Disruptors

Defiance ETFs has introduced an innovative line of ETFs under the Battleshares brand, designed to capitalize on strategic rivalries in leading industries. The first in the series, the Battleshares TSLA vs. F ETF ELON, is set to redefine how investors engage with competitive market dynamics.

ELON takes an aggressive stance on the long-standing rivalry between Tesla TSLA and Ford F. The actively managed fund adopts a long/short strategy, taking a leveraged long position in Tesla at approximately +200% of the fund’s net assets while holding a leveraged short position in Ford at -100% of the fund’s net assets. This structure provides investors with a targeted opportunity to bet on the divergence between innovation-led growth and traditional automaking strategies.

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In an exclusive interview with Benzinga, Defiance ETFs CEO Sylvia Jablonski discussed how this approach aims to “capitalize on the competition between disruptors and incumbents across various sectors.”

“For years investors have been expressing opinions by going long and short, and even pair trading. However, there has never been an innovative tool like ours, which democratizes institutional-like strategies for all investors. The Battleshares ETFs differ from existing thematic ETFs by focusing on direct head-to-head rivalries within industries, employing a leveraged long/short strategy to capture potential gains from both the success of innovators and the challenges faced by legacy companies,” she noted.

Speaking on why Tesla vs. Ford was chosen as the first competitive pairing for the Battleshares lineup, Jablonski said, “Tesla and Ford were chosen as the inaugural pairing for the Battleshares lineup due to their prominent positions in the evolving automotive industry. Tesla represents innovation in electric vehicles, while Ford symbolizes traditional automotive manufacturing. This pairing highlights the ongoing transformation within the sector. There is also a lot of buzz about Elon in politics today, putting the spotlight on his companies.”

Jablonski noted that Defiance will regularly review and adjust Battleshares ETFs based on market trends and investor demand. Potential new launches could occur as early as next week. The company is also considering hedged versions for risk-averse investors.

Regarding how these ETFs are expected to perform compared to traditional long-only sector funds, Jablonski said that the Battleshares ETFs “offer a unique approach by providing exposure to both the potential gains of innovative companies and the declines of their legacy counterparts. This strategy aims to enhance returns by capturing the competitive dynamics within industries.

By listing ELON on the NYSE, Defiance ETFs is providing investors with a distinctive vehicle to gain exposure to the evolving automotive sector. As Tesla continues its disruptive trajectory with advancements in electric vehicles and AI-driven automation, Ford remains a key player adapting to an increasingly electrified and digital automotive landscape. ELON offers a structured way to navigate this market transformation.

The unique structure of this suite involved some regulatory considerations. “Defiance has worked closely with regulatory bodies to ensure compliance and transparency, addressing any potential hurdles to bringing these innovative products to market,” Jablonski said.

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