A leveraged exchange traded fund (ETF) that lets investors short silver was down nearly 8% in premarket action Monday as the metal’s price soared to almost $50 an ounce.
ProShares UltraShort Silver (NYSEArca: ZSL) slipped 7.6% before Monday’s opening bell. The so-called leveraged inverse ETF has been trampled by the seemingly unstoppable rally in silver.
The bearish silver ETF plunged last week while trading volume in the fund surged. [Silver Rally Squeezes Bearish ETF as Trading Volume Spikes.]
ProShares UltraShort Silver is designed to produce daily returns that correspond to 200% of the inverse performance of silver bullion.