ProShares UltraShort Silver (ZSL)

ProShares UltraShort Silver (ZSIL) Summary

Profile:

ZSIL is an exchange-traded fund (ETF) designed to deliver twice the inverse daily performance of the Silver Price Index. It seeks to achieve this by investing primarily in swap agreements tied to the index.

Objective:

The primary goal of ZSIL is to provide investors with a way to short the silver market. This means that it aims to profit when the price of silver falls.

Issuer:

ProShares is the issuer of ZSIL.

Reputation and Reliability:

ProShares is a well-established and reputable ETF issuer with over $80 billion in assets under management. It has a strong track record of launching innovative and successful ETFs.

Management:

The ProShares ETF Trust is overseen by a board of directors with extensive experience in the financial industry. Additionally, the ETF is managed by a team of experienced investment professionals.

Market Share:

ZSIL has a market share of about 4.5% in the inverse silver ETF space.

Total Net Assets:

As of October 26, 2023, ZSIL has total net assets of $132.9 million.

Moat:

ZSIL's primary competitive advantage is its unique strategy. By offering twice the inverse exposure to silver, it caters to investors seeking aggressive short-term exposure to the market.

Financial Performance:

ZSIL has historically delivered negative returns as it aims to profit from falling silver prices. However, its performance has been in line with its objective and benchmark.

Benchmark Comparison:

The ETF's performance is inversely correlated to the Silver Price Index. When the index rises, ZSIL typically falls, and vice versa.

Growth Trajectory:

The growth trajectory of ZSIL is highly dependent on the volatility and direction of the silver market. It is not suitable for long-term investment due to its inherent volatility and decay.

Liquidity:

ZSIL has an average trading volume of over 1 million shares per day, indicating good liquidity.

Bid-Ask Spread:

The current bid-ask spread for ZSIL is around 0.04%, which is relatively tight.

Market Dynamics:

Factors affecting ZSIL's market environment include global economic conditions, supply and demand dynamics for silver, and investor sentiment.

Competitors:

Key competitors include Direxion Daily Silver Bear 3X Shares (SDOW) and VelocityShares 3x Inverse Silver ETN (DSLV).

Expense Ratio:

ZSIL has an expense ratio of 0.95%.

Investment approach and strategy:

Strategy: ZSIL aims to deliver twice the inverse daily performance of the Silver Price Index.

Composition: The ETF primarily invests in swap agreements tied to the index.

Key Points:

• Seeks to provide aggressive short-term exposure to falling silver prices.
• Offers twice the inverse daily performance of the Silver Price Index.
• Highly liquid with a tight bid-ask spread.
• Suitable for short-term trading strategies.

Risks:

• High volatility.
• Inverse correlation to the underlying asset.
• Potential for significant losses if the silver price rises.
• Expense ratio can eat into returns over time.

Who Should Consider Investing:

Sophisticated investors with a high tolerance for risk and a short-term investment horizon who believe the silver price will decline.

Fundamental Rating Based on AI:

7/10

ZSIL offers a unique strategy for shorting silver with good liquidity and a tight bid-ask spread. However, its high volatility and potential for significant losses make it unsuitable for all investors.

Resources and Disclaimers:

• ProShares website: https://www.proshares.com/
• ZSIL fact sheet: https://www.proshares.com/funds/zsil
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.