When evaluating exchange-traded funds (ETFs), relative volume is a useful metric for gauging market interest and trading activity. Using the TipRanks ETF Screener, we identified three ETFs with significantly higher trading volumes, making them potential buys right now.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Relative volume measures an ETF’s current trading activity against its three-month average, revealing whether it is being actively traded. A spike in relative volume often leads to enhanced liquidity, ensuring smoother and more efficient transactions.
Furthermore, increased trading activity typically narrows the bid-ask spread—the gap between the price buyers are willing to pay and what sellers will accept. This reduction in spreads lowers trading costs, offering a clear advantage for investors.
In summary, ETFs with higher relative volume not only attract market attention but also create a more cost-effective and seamless trading experience. For investors, these factors make such ETFs compelling opportunities to consider.
2x Ether ETF (ETHU)
The 2x Ether ETF (ETHU) is an actively managed fund that aims to provide 2x the daily price movements of Ether (ETH). The fund’s primary investment is cash-settled CME Ether futures. The fund does not directly invest in Ether. Ether is the native token of the Ethereum network. This ETF is trading at 3.5 times the average volume over the past three months, indicating heightened investor activity. The fund currently has $1.03 billion in assets under management (AUM).
This fund could be attracting interest from investors due to the growing interest in crypto, as Bitcoin’s price has jumped by over 100% year-to-date. However, this ETF has declined by more than 40% over the past year.
T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ)
The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) makes another appearance on the best ETFs list this week, trading at 3.49 times the average volume over the past three months. This rise in investor interest could be due to Tesla (TSLA) being perceived as benefiting from the U.S. elections’ results, with Musk firmly backing President-elect Trump. Year-to-date, TSLZ has fallen by more than 85%.
GraniteShares 1.5x Short TSLA Daily ETF (TSDD)
GraniteShares 1.5x Short TSLA Daily ETF (TSDD) provides 2x inverse leveraged exposure, less fees and expenses, to the daily price movement of Tesla stock. This ETF currently has $26.1 million in AUM and has declined by more than 85% year-to-date. The ETF is trading at 3.39 times the average volume over the past three months.
Key Takeaway
In conclusion, the 2x Ether ETF (ETHU), T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ), and GraniteShares 2x Short TSLA (TSDD) ETFs are experiencing a surge in trading volumes, signaling heightened investor interest. While these ETFs have faced steep declines—ETHU is down 40%, TSLZ is down 85%, and TSDD is also down 85%—they continue to attract attention due to their unique inverse exposure to cryptocurrency and Tesla.
This inverse positioning appeals to investors seeking opportunities to profit from potential declines in these underlying assets. Despite the significant losses, the increased activity suggests that these ETFs remain a go-to choice for those aiming to capitalize on bearish market sentiment toward crypto and Tesla.
