A New Way To Bet On Costco: Leverage Shares Unveils 2X ETF

The world of leveraged ETFs is welcoming a new consumer behemoth. Leverage Shares by Themes introduced the Leverage Shares 2X Long COST Daily ETF (NASDAQ:COTG), providing investors with double daily exposure to Costco Wholesale Corp. (NASDAQ:COST) shares, as the warehouse club continues to scoop up U.S. consumer spending. The fund was listed on Sept. 18.

Check out COST stock here.

Leveraged single-stock ETFs have generally focused on technology giants such as Tesla, Nvidia or Amazon. By including Costco in its portfolio, Themes ETFs is taking a bet that investors are seeking exposure to a retailer with a loyal membership base and bulk shopping approach that has made it one of America’s most durable consumer names.

Costco's rise has been notable in a landscape where inflation has pressured household budgets. Its low-cost, high-volume strategy has turned it into a barometer for consumer demand, with quarterly results closely watched by both Wall Street and shoppers alike. The new ETF aims to capture that momentum by providing 200% of the stock's daily performance, both gains and losses.

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At an industry-low 0.75% expense ratio for single-stock leveraged ETFs, the fund is marketed to active traders who want to speculate on Costco’s short-term fluctuations at a lower cost. “Costco has experienced fantastic growth and a very loyal base of customers,” said Themes ETFs Chief Revenue Officer Paul Marino. “We believe it is a great addition to our family.

The addition of COTG raises Leverage Shares’ overall number of leveraged single-stock ETFs to 25, highlighting the company’s efforts to diversify from technology names and into consumer-oriented sectors. Analysts point out that though the funds can provide leveraged returns, they are meant for short-term use and carry increased risks, especially during times of volatility.

Now that Costco has entered the picture, levered ETF investors have another vehicle to see if America’s bulk-buying habit can translate into bulk-sized portfolio profits.

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