The product is unpopular having amassed just $3 million in its asset base since its launch and illiquid trading in paltry volume of under 2,000 shares per day on average. The note charges 1.35% in fees and expenses.
Investors should note that since these products are extremely volatile, these are suitable only for traders and those with a high risk tolerance. Additionally, the daily rebalancing—when combined with leverage—may make these products deviate significantly from the expected long-term performance figures.
Still, for ETF investors who are bullish on precious metal in the near term, any of the above products could make for interesting choices. Clearly, many are cycling their exposure in the precious metal space, so a short-term long bet could be intriguing for aggressive investors in this corner of the investing world.
This article is brought to you courtesy of Eric Dutram.