Spotlight On ProShares Ultra Silver ETF

Oct.26.11 | About: ProShares Ultra (AGQ)

ETF spotlight on ProShares Ultra Silver ETF (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.

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 ETF

click to enlarge

Click to enlarge

Max Chen contributed to this article.

Disclosure: None