When choosing exchange-traded funds (ETFs), relative volume can be a valuable metric for identifying market interest and activity. Using the TipRanks ETF Screener, we found three ETFs experiencing significantly higher trading volumes that could be a buy.
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Relative volume compares an ETF’s current trading activity to its three-month average, offering insights into how actively it’s being traded. A surge in relative volume often translates to improved liquidity, as heightened trading activity results in smoother transactions.
Moreover, higher relative volume typically narrows the bid-ask spread—the difference between the price buyers are willing to pay and what sellers will accept—reducing trading costs for investors.
In essence, ETFs with elevated relative volume not only capture market attention but also create a more efficient trading environment. For investors, this means lower costs and seamless transactions, making such ETFs an attractive consideration.
T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ)
The T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) provides inverse exposure to the daily price movement of MicroStrategy stock (MSTR) and was launched earlier this year. This ETF is currently trading at more than 4.81 times its average trading volume over the past three months, indicating heightened investor activity.
The ETF could be attracting interest from investors looking to bet against MSTR, which has surged by more than 200% over the past three months due to its growing crypto holdings. Additionally, Bitcoin’s price has jumped by over 100% year-to-date. Despite this, the MSTZ ETF has plummeted by more than 90% over the past three months.
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 3.48 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 2x Short TSLA Daily ETF (TSDD)
Once again, the GraniteShares 2x Short TSLA Daily ETF (TSDD) makes an appearance on the best ETFs list this week, trading at 2.28 times the average volume over the past three months. This ETF provides 2x inverse leveraged exposure to Tesla (TSLA) stock and has dropped by more than 80% over the past three months. The TSDD ETF has an expense ratio of 0.95%.
Key Takeaway
In summary, the T-Rex 2X Inverse MSTR (MSTZ), T-Rex 2X Inverse Tesla (TSLZ), and GraniteShares 2x Short TSLA (TSDD) ETFs are seeing higher trading volumes, indicating increased investor interest. Despite significant declines—MSTZ down 90%, TSLZ down 85%, and TSDD down 80%—these ETFs offer inverse exposure to MicroStrategy and Tesla, attracting those looking to bet against them.
