ProShares Ultra Short Silver (ZSL)

[zsvq1p]

trdwl...

This ETF is only based on today's trade.. This will always be a very BAD long trade. Trade this ETF as a hedge or quick buck.

This Short ProShares ETF seeks a return that is -2x the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period.

Example using $100 Starting investment:

Day 1 Value gaining 10% is $100 x 1.10 = $110.00
Day 2 Value losing (10%) is $110 x .90 = $99.00
conversely
Day 1 Value Loses (50%) is $100 x .50 = $50.00
Day 2 Value gains 50% is $50 x 1.50 = $75.00

http://www.proshares.com/funds/performance/the_universal_effects_of_compounding.html


And this too I believe...
The reason is due to contango. The fund is selling swaps, not silver.. a bet on the future, not today spot silver price.

http://www.investopedia.com/articles/07/contango_backwardation.asp

This is the example on UCO...