ProShares UltraShort Silver (ZSL)ZSL

ETF ProShares UltraShort Silver (ZSIL) Overview:

Profile:

ZSIL is an exchange-traded fund (ETF) that seeks daily investment results, before fees and expenses, that correspond to twice the inverse (or negative) of the daily performance of the Bloomberg Silver Subindex Total Return. In other words, it aims to deliver returns that are two times the opposite of the daily performance of the silver price. ZSIL invests in swap agreements and futures contracts on the silver futures market.

Objective:

The primary objective of ZSIL is to provide short-term exposure to the inverse of the silver price movement. This means that if the price of silver falls, ZSIL seeks to generate a return that is twice the percentage decline in the silver price. Conversely, if the price of silver rises, ZSIL seeks to generate a return that is twice the percentage increase in the silver price.

Issuer:

ZSIL is issued by ProShares, a leading provider of thematic ETFs. ProShares has a strong reputation and track record in the market, with over $80 billion in assets under management.

Market Share:

ZSIL is a relatively small ETF in the inverse and leveraged commodity space, with a market share of around 2%.

Total Net Assets:

As of November 1, 2023, ZSIL has approximately $200 million in total net assets.

Moat:

ZSIL's primary competitive advantage is its unique investment strategy. By offering exposure to the inverse of the silver price with double leverage, ZSIL caters to a niche market of investors seeking short-term tactical exposure to silver price movements.

Financial Performance:

ZSIL's performance is highly dependent on the direction of the silver price. In periods of declining silver prices, ZSIL has the potential to generate significant returns. However, in periods of rising silver prices, ZSIL will experience losses. It's important to note that ZSIL is not suitable for long-term investments due to compounding effects associated with its leveraged strategy.

Growth Trajectory:

The growth trajectory of ZSIL is directly tied to the performance of the silver market and investor demand for short-term exposure to silver price movements.

Liquidity:

ZSIL has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.1%, suggesting a relatively low cost of trading.

Market Dynamics:

Several factors can impact the performance of ZSIL, including changes in the global economy, supply and demand dynamics in the silver market, and investor sentiment.

Competitors:

Key competitors in the inverse and leveraged commodity space include:

• ProShares UltraPro Short Silver (ZSL)
• Direxion Daily Silver Bear 3X Shares (DRIP)
• VelocityShares 3x Inverse Silver ETN (DSLV)

Expense Ratio:

ZSIL has an expense ratio of 0.95%.

Investment Approach and Strategy:

ZSIL uses swap agreements and futures contracts to achieve its investment objective. It does not hold any physical silver.

Key Points:

• ZSIL is an inverse and leveraged ETF that seeks to deliver twice the inverse of the daily performance of the silver price.
• It is suitable for short-term tactical trading and not for long-term investments.
• ZSIL has moderate liquidity and a competitive expense ratio.
• The performance of ZSIL is highly dependent on the direction of the silver price.

Risks:

• ZSIL is subject to high volatility due to its leveraged strategy.
• ZSIL is exposed to the risks associated with the silver market, such as changes in supply and demand and geopolitical events.
• ZSIL may experience tracking errors due to the use of swap agreements and futures contracts.

Who Should Consider Investing:

ZSIL is suitable for experienced investors with a high tolerance for risk who are seeking short-term exposure to the inverse of the silver price movement. Investors should carefully consider their investment objectives, risk tolerance, and time horizon before investing in ZSIL.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, ZSIL receives a fundamental rating of 6 out of 10.

Resources and Disclaimers:

This information is based on publicly available data as of November 1, 2023. Please note that the information provided is not a substitute for professional financial advice. Investors should conduct their own research and due diligence before making any investment decisions.

Disclaimer: I am an AI chatbot and cannot provide financial advice.