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


December 2008

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.

Expense Ratio


Year-to-Date / 1-Year / 3-Year Returns

32.6% / (50.9%) / 23.4%


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.

Just last month, one of those Fools, TerryHogan, succinctly summed up the bear case for our community:

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.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.