1-Star ETNs Poised to Plunge: VelocityShares 3x Long Silver?


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the VelocityShares 3x Long Silver ETN (ASE: USLV) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at VelocityShares 3x Long Silver ETN and see what CAPS investors are saying about the ETN right now.

USLV facts


October 2011

Total Net Assets

$121.9 million

Investment Approach

Seeks to replicate three times the S&P GSCI Silver index. The index comprises futures contracts on a single commodity. The fluctuations in the values of it are intended generally to correlate with changes in the price of silver in global markets.

Expense Ratio


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

5.1% / 94.7% / 42.4%


ProShares Ultra Silver (ASE: AGQ)
iShares Silver Trust
ETFS Physical Silver Shares

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 42% of the 72 members who have rated USLV believe the ETN will underperform the S&P 500 going forward.

Just this past summer, one of those Fools, All-Star TerryHogan, succinctly summed up the USLV bear case for our community: "I remember an old Trivial Pusuit question that asked who was the largest user of Silver in the world, answer -- Kodak. I'm not sure what the answer is today, but I don't see where sustainable demand is coming from, and I just don't like triple leveraged ETFs, as they degrade with any volatility."

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The article 1-Star ETNs Poised to Plunge: VelocityShares 3x Long Silver? originally appeared on Fool.com.

Brian D. Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.

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