Capped Power: Tesla and Nvidia’s Newest ETFs Promise Leverage, Not Liquidation

Traditional leveraged ETFs, which target two or three times the daily performance of major stocks, promise high returns but can quickly spiral out of control during sharp drawdowns. Now, new ETFs focused on Tesla (TSLO), Nvidia (NVDO), and industry leaders like Coinbase and Palantir, use an options-based design to offer up to 2x the monthly gains—but cap those maximum returns at a set upper limit, such as 20% per month.

Here’s how it works: If Tesla shares climb 12% in a given month, the Leverage Shares 2x Capped Accelerated TSLA Monthly ETF (ticker: TSLO) could return the full 20% cap. But if Tesla drops 15%, investors see the same 15% slide—without the doubling or tripling of losses typical of old-school leveraged ETFs.

Buffer Features Without the Performance Drag

Classic “buffer” ETFs protect against a portion of losses by trading off a chunk of the upside. This new breed goes further: Investors receive full downside exposure (not leveraged), but enjoy up to 2x the upside, capped each calendar month. The result: a tool that amplifies positive trends while keeping risk tied to the stock, not debt or leverage-fueled whipsaws.

Traders are free to buy or sell these ETFs any day—they aren’t locked in for a full month—giving flexibility alongside the performance enhancements. At a management fee of 0.75%, they remain cheaper than many other options-based products in this fast-growing ETF category.

Why Now? Volatility, Innovation, and Investor Demand

Demand for new ETF designs is booming: Over 100 new leveraged or inverse products hit the U.S. market so far in 2025, smashing last year’s records. A big reason is volatility in favorites like Tesla and Nvidia—household names with extreme price swings and legions of traders eager for enhanced returns without catastrophic blow-ups.

The approach targets hot sectors—AI, EVs, crypto, and big data—where traders are hungry for outsized returns but wary of traditional leverage’s risks. Instead of exposing portfolios to ruinous swings, the capped accelerated format offers a more balanced way to play for gains with a fully known risk profile.

ETF Lineup: More Than Just Tesla and Nvidia

The new funds launched include tickers like:

TSLO (Tesla)

NVDO (Nvidia)

COIO (Coinbase)

PLOO (Palantir)

MSOO (MicroStrategy)

This innovation from Leverage Shares by Themes adds to a lineup now featuring nearly 30 single-stock leveraged ETFs—reflecting how ETF arms-race for creative ways to balance outsize returns with manageable risk is redefining the toolkit for investors.

Investors: Boost Returns, Cap Risk

For those who want the thrill of amplified returns but loathe the prospect of leverage-driven wipeouts, these new ETFs strike a rare balance—turbocharging performance and capping monthly volatility. As leveraged ETFs evolve, smarter designs could soon become the new standard for dynamic traders and tactical investors.

Always review the risks, fund structure, and prospectus materials before diving in, as these ETFs target short-term, high-volatility names and outcomes are never guaranteed.

Quickly compare any ETF side by side with our ETF Compare Tool