Earnings season is the first big test for single-stock ETFs after a slow start in the U.S.

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The products have struggled to attract inflows in their first few months on the market, but have seen higher trading volume around earnings.

The nascent single-stock ETFs have reached a key period to prove their worth after a slow start for the group in the United States. The products, which were approved by the Securities and Exchange Commission in July , have struggled to attract inflows in their first few months on the market. According to data compiled by Aniket Ullal, CFRA's head of ETF data and analytics, the nearly two dozen U.S.

Recent performance of several Tesla funds on the market, including inverse funds from GraniteShares, Direxion and AXS, as well as a 1.5x leveraged fund from Direxion, show that daily moves are often within a few basis points of what should be expected. "They're doing what they're supposed to on the label," Ullal said. But if investors don't follow the daily trading prescribed for the funds, performance can suffer.

 

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