Overview: The WisdomTree Silver 3x Daily Leveraged ETF (symbol: 3SIL) is designed to provide a total return equivalent to three times the daily performance of the NASDAQ Commodity Silver ER Index. This ETF primarily invests in silver futures contracts, seeking to capitalize on price movements of this precious metal. In addition to exposure to futures contracts, it also generates interest income on collateralized amounts.
Benefits: One of the main advantages of this ETF is its ability to triple potential gains related to silver, which can be particularly attractive for investors looking to take advantage of short-term fluctuations in silver prices. Furthermore, the ETF's structure allows for simplified exposure to an asset that can serve as a hedge against inflation and economic uncertainties.
Risks: However, this ETF carries significant risks. The leveraged nature of the investment means that losses can also be amplified, making this instrument more volatile than traditional investments in silver. Investors should be aware of daily price fluctuations and the possibility of substantial losses, especially during periods of high volatility in commodity markets.
Investor Profile: This ETF is primarily suitable for experienced investors and those with a high risk tolerance. It is particularly well-suited for short-term traders looking to capitalize on rapid price movements in silver, rather than long-term investors seeking stable exposure to this precious metal.
Total Annual Returns, Including Dividends
The drawdown measures the decline in price from its historical high. It helps assess the fund's downside risk. The calculation includes dividends.
| Volatility | Max drawdown | Sharpe ratio | |
|---|---|---|---|
| 1 year | |||
| 3 years | |||
| 10 years | |||
| Max |