This product offers leveraged exposure to silver futures, making it potentially useful for those looking to bet heavily on a short-term movement in the price of the precious metal. Given the leverage utilized, USLV can be expected to exhibit a fair amount of volatility; this ETN is designed for investors who are both risk-tolerant and sophisticated; it has no place in a long-term, buy-and-hold portfolio, and should only be used by those with the ability to monitor the position closely. There are several elements of USLV that are noteworthy. First, it's important to understand that the product offers exposure not to spot silver prices but to an index comprised of silver futures contracts. So the slope of the futures curve will have an impact on bottom line returns, as will yields derived from any uninvested cash. Second, be aware that USLV's exposure resets on a daily basis, meaning that performance over multiple trading sessions depends on the path taken by the index over that periods (daily compounding can either erode or enhance returns, depending on the environment). Third, investors should note that USLV is an ETN, meaning that they are exposed to the credit risk of the issuing institution. There are, however, plenty of advantages to pursuing this strategy through the ETN structure. Tracking error, which can become significant in futures-based and 3x leveraged strategies, is avoided entirely. And investors won't get a K-1 after holding this product; futures-based commodity ETFs, such as the leveraged silver products from ProShares, typically generate those tax obligations, and can result in undesirable tax obligations as well. For investors seeking plain vanilla silver exposure, SIVR or SLV are both good options; those physically-backed products move in unison with changes in the spot price of the metal. USLV can be a very powerful tool if used correctly, but if you're not familiar with the nuances of leverage and futures-based strategies, it's best to stay away or stick to non-leveraged options.
The adjacent table gives investors an individual Realtime Rating for USLV on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Leveraged Commodities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This ETF is not currently available for commission free trading on any platforms.
There are 0 other ETFs in the Leveraged Commodities ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of USLV relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
2014 Morningstar, Inc. All Rights Reserved. The information contained herein: ( 1 ) is proprietary to Morningstar and/or its content providers; ( 2 ) may not be copied or distributed; and ( 3 ) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Source: LSEG Information Services (US), Inc. (“LSEG”) © LSEG 2016. All rights in the XTF data, ratings and / or underlying data contained in this communication (“the XTF information”) vest in LSEG and/or its licensors. Neither LSEG nor its licensors accept any liability arising out of the use of, reliance on or any errors or omissions in the XTF information. No further distribution of the XTF information is permitted without LSEG’s express written consent. LSEG does not promote, sponsor or endorse the content of this communication.