ProShares UltraShort Gold (GLL)

ETF ProShares UltraShort Gold (GLL): Overview

Profile:

ProShares UltraShort Gold (GLL) is an exchange-traded fund (ETF) that seeks to deliver twice the daily inverse performance of the gold price, as measured by the NYSE Arca Gold Index. It primarily focuses on precious metals and employs a shorting strategy to achieve its objective.

Objective:

The primary investment goal of GLL is to provide short-term exposure to the daily inverse performance of gold prices. This makes it suitable for investors who anticipate a decline in gold prices or want to hedge existing long positions in gold.

Issuer:

ProShares is the issuer of GLL.

Reputation and Reliability:

ProShares is a well-known and established ETF issuer with a strong track record. It has been managing thematic and inverse ETFs since 2006 and currently has over $80 billion in assets under management.

Management:

The ProShares ETF Trust is overseen by a board of trustees, comprising experienced professionals with expertise in finance, investments, and law. The ETF's portfolio is actively managed by a team of investment professionals at ProShares.

Market Share:

GLL currently holds a market share of approximately 17.4% in the inverse gold ETF space.

Total Net Assets:

As of November 16, 2023, GLL has $1.01 billion in total net assets.

Moat:

GLL's competitive advantages include its:

• First-mover advantage: GLL was the first inverse gold ETF, giving it a head start in the market.
• Strong liquidity: GLL has a high average trading volume, making it easy to buy and sell shares.
• Experienced management team: ProShares has a team of experienced professionals managing the ETF.
• Low expense ratio: GLL has a relatively low expense ratio compared to other inverse gold ETFs.

Financial Performance:

GLL's historical performance has been closely tied to the movement of gold prices.

Benchmark Comparison:

GLL has generally outperformed its benchmark index, the NYSE Arca Gold Index, during periods of declining gold prices. However, it has underperformed during periods of rising gold prices.

Growth Trajectory:

The growth trajectory of GLL is largely dependent on the future direction of gold prices. Currently, the market is mixed on the outlook for gold, with various factors at play.

Liquidity:

GLL has an average daily trading volume of approximately 4.6 million shares. The bid-ask spread is typically around 0.05%, indicating good liquidity.

Market Dynamics:

The price of gold is influenced by various factors such as:

• Global economic conditions: Economic uncertainty and inflation tend to drive gold prices higher.
• Interest rates: Rising interest rates make gold less attractive to investors.
• Demand for gold: Jewelry and industrial demand can influence gold prices.

Competitors:

Key competitors of GLL in the inverse gold ETF space include:

• ProShares UltraPro Short Gold (GLLD)
• Direxion Daily Gold Miners Index Bear 2X Shares (DUST)
• VelocityShares 3x Inverse Gold ETN (DGLD)

Expense Ratio:

The expense ratio of GLL is 0.95%.

Investment Approach and Strategy:

GLL utilizes a shorting strategy to achieve its inverse performance objective. It invests in futures contracts on the gold market, aiming to profit from declines in gold prices.

Key Points:

• Seeks daily inverse performance of the gold price.
• Suitable for short-term exposure and hedging.
• Managed by ProShares, a well-established ETF issuer.
• First-mover advantage and strong liquidity.
• Performance closely tied to gold price movements.

Risks:

• Volatility: GLL is a leveraged ETF, making it more volatile than traditional gold ETFs.
• Market risk: GLL's performance is directly tied to the price of gold, exposing it to market-related risks.
• Counterparty risk: GLL invests in futures contracts, which involve counterparty risk.

Who should consider investing:

• Investors who anticipate a decline in gold prices.
• Investors who want to hedge existing long positions in gold.
• Investors who are comfortable with higher volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis of GLL's financial health, market position, and future prospects, its fundamental rating is 7.5 out of 10. This rating considers factors such as the ETF's performance, liquidity, expense ratio, and management team.

Resources and Disclaimers:

• ProShares ETF website: https://www.proshares.com/
• Yahoo Finance: https://finance.yahoo.com/quote/GLL/
• Disclaimer: This information is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.