1-Star ETFs Poised to Plunge: ProShares UltraShort Gold?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ProShares UltraShort Gold (NYS: GLL) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at ProShares UltraShort Gold and see what CAPS investors are saying about the ETF right now.
ProShares UltraShort Goldfacts
|Total Net Assets||$100.1 million|
|Investment Approach||Seeks to provide daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of gold bullion as measured by the U.S. dollar p.m. fixing price for delivery in London.|
|Year-to-Date / 1-Year / 3-Year Returns||(27.9%) / (7.0%) / (39.3%)|
|Alternatives||PowerShares DB Gold Short ETN|
PowerShares DB Gold Double Short ETN
ProShares UltraShort Silver
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 57% of the 347 members who have rated ProShares UltraShort Gold believe the ETF will underperform the S&P 500 going forward.
With anything other than a straight downward trajectory for the commodity these guys will degrade over time due to the leverage. So as long as there's some volatility they will underperform in the very long run. If there's an up market, they will underperform very quickly in the short run.
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 1-Star ETFs Poised to Plunge: ProShares UltraShort Gold? originally appeared on Fool.com.Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days.We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.