2-Star ETFs Poised to Plunge: ProShares Ultra Silver?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ProShares Ultra Silver (NYS: AGQ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at ProShares Ultra Silver and see what CAPS investors are saying about the ETF right now.
ProShares Ultra Silverfacts
|Total Net Assets||$931.4 million|
|Investment Approach||Seeks to provide daily investment results that correspond to twice (200%) the daily performance of silver bullion as measured by the U.S. dollar fixing price for delivery in London.|
|Year-to-Date / 1-Year / 3-Year Returns||32.6% / (50.9%) / 23.4%|
|Alternatives||iShares Silver Trust|
ETFS Physical Silver
Global X Silver Miners
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 43% of the 129 All-Star members who have rated ProShares Ultra Silver believe the ETF will underperform the S&P 500 going forward.
Silver production has been growing for about the past decade, at the same time that demand for photographic purposes has declined. If prices remain high, industrial uses will also decline due to alternative methods. The previous high prices are not sustainable. Also, it's a leveraged ETF with an expense ratio, so it will inevitably degrade over time with any sort of volatility.
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The article 2-Star ETFs Poised to Plunge: ProShares Ultra Silver? originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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