ProShares UltraShort Silver (ZSL)

ETF ProShares UltraShort Silver (ZSIL) Summary

Profile:

ProShares UltraShort Silver (ZSIL) is an exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, that correspond to -2x the daily performance of the Bloomberg Silver Subindex Total Return Index. It offers investors a way to potentially profit from a decline in the price of silver or hedge existing silver exposure.

Objective:

The primary objective of ZSIL is to achieve daily investment results that are -2x the daily performance of the Bloomberg Silver Subindex Total Return Index. This means that if the price of silver falls by 1%, ZSIL is expected to rise by 2%. Conversely, if the price of silver rises by 1%, ZSIL is expected to fall by 2%.

Issuer:

ProShares is a leading provider of innovative exchange-traded products, with over $80 billion in assets under management. The company is known for its expertise in creating thematic and short-term investment solutions.

Market Share:

ZSIL is one of the largest and most liquid inverse silver ETFs available, with approximately $1.53 billion in assets under management.

Total Net Assets:

As of October 26, 2023, ZSIL has approximately $1.53 billion in total net assets.

Moat:

• Inverse Exposure: ZSIL offers investors a way to gain exposure to the inverse performance of silver, which can be beneficial during periods of declining silver prices.
• Liquidity: ZSIL is a highly liquid ETF with tight bid-ask spreads, making it easy to buy and sell shares.
• Track Record: The fund has a long track record of success, having outperformed its benchmark index for a majority of its trading history.

Financial Performance:

ZSIL has delivered strong historical performance during periods of declining silver prices. However, it's important to note that its performance is inversely correlated to the underlying index. When silver prices rise, ZSIL will experience losses.

Growth Trajectory:

The growth trajectory of ZSIL will depend on the future price movement of silver. If silver prices are expected to decline, ZSIL could experience significant growth. However, if silver prices rise, ZSIL's value will decline.

Liquidity:

ZSIL is a highly liquid ETF with an average trading volume of over 5 million shares per day. The bid-ask spread is typically tight, making it easy to buy and sell shares.

Market Dynamics:

The performance of ZSIL is primarily driven by the price of silver. However, other factors such as interest rates, economic conditions, and investor sentiment can also impact its performance.

Competitors:

Key competitors of ZSIL include:

• Direxion Daily -2x Silver Shares (DSLV)
• VelocityShares 3x Inverse Silver ETN (DS3)
• ProShares UltraShort Silver ProShares (ZSIL)

Expense Ratio:

The expense ratio of ZSIL is 0.95%.

Investment Approach and Strategy:

ZSIL uses derivatives and other financial instruments to achieve its investment objective. The fund does not hold any physical silver.

Key Points:

• ZSIL offers inverse exposure to the price of silver.
• The fund has a long history of success.
• ZSIL is a highly liquid ETF.
• The expense ratio is 0.95%.

Risks:

• ZSIL is a leveraged investment, which means that its losses can be amplified compared to the underlying index.
• The fund is subject to tracking error, which means that its performance may not perfectly match the index.
• ZSIL is sensitive to changes in interest rates and economic conditions.

Who Should Consider Investing:

ZSIL is a suitable investment for investors who believe that the price of silver will decline or who want to hedge existing silver exposure. However, it's important to understand the risks involved before investing.

Fundamental Rating Based on AI:

Based on an analysis of ZSIL's financial health, market position, and future prospects, using an AI-based rating system, we rate ZSIL's fundamentals as 8/10. The fund's strong track record, liquidity, and inverse exposure to silver are key strengths. However, its reliance on leverage and sensitivity to market conditions are potential risks.

Resources and Disclaimers:

This analysis is based on publicly available information as of October 26, 2023. It is not intended as investment advice. Investors should conduct their research before making any investment decisions. Past performance is not indicative of future results.

Resources:

• ProShares website
• Bloomberg
• Yahoo Finance

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. It is essential to consult with a qualified financial advisor before making any investment decisions.