ETF spotlight on ProShares Ultra Silver (NYSEArca: AGQ), part of an ongoing series.
Assets: $727.31 million.
Objective: The Ultra ProShares ETF tries to reflect twice (200%) the daily performance of silver bullion as measured by the U.S. dollar fixing price for delivery in London.
Holdings: The fund holds silver forward contracts.
What You Should Know:
- ProShares sponsors the fund.
- AGQ has an expense ratio of 0.95%.
- The fund is down 2.8% over the past month, down 46.45% over the last three months and down 27.28% year-to-date.
- Leveraged investments are intended to be monitored closely – the funds rebalance on a day-to-day basis.
- Investors should not hold these investments for long-term periods as compounding issues may cause the leveraged funds to deviate from their target objective.
- Additionally, bouts of high market volatility may also cause a leveraged fund’s performance to skew from its intended target over time. [Leveraged ETFs and Volatility]
The Latest News:
- AGQ ended trading up 10.28% Tuesday.
- Cautious investors piled into safe-haven assets, like silver, ahead of the EU summit Wednesday.
- “The likelihood of the Eurozone sorting out [its]intractable problems has come into question again as … Europe’s largest banks have clashed with politicians about the size of losses they will have to take on their Greek debt,” GoldCore analysts said, reports MarketWatch.
- Metals also rose Tuesday on speculation that the Federal Reserve may ease further. [Silver ETFs Climb 5% on Waning Sentiment, Fed Talk]
ProShares Ultra Silver
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.