Question... Boost Silver 3x ETP index vs Silver actual

[Minde1]

Hi there. 

I'm new here so have a question about BOOST SILVER 3X LEVERAGE DAILY ETP. I see a huge index position drop against the historical and actual Silver price index... Something this ETP suppose to follow and reflect, or I am wrong in thinking so and expecting this? 

Thanks in advance. M

[JamesIG]

You can download the Factsheets for these ETFs here:  https://etfscreener.ig.com however you'd just need to search the individual asset you are trading. 

Which drop are you referring to? I've just had a look at the chart and can't see anything significant. Sometimes on these assets they go through a corp action which can result in a significant move (10 for 1 for example with the asset price moving by the same ratio). 

If you shoot over some more info Community should be able to help maybe a screenshot?

[trade247]

This should be the important parts of the sheet.

 

[Minde1]

On 15/04/2019 at 11:37, JamesIG said:

You can download the Factsheets for these ETFs here:  https://etfscreener.ig.com however you'd just need to search the individual asset you are trading. 

Which drop are you referring to? I've just had a look at the chart and can't see anything significant. Sometimes on these assets they go through a corp action which can result in a significant move (10 for 1 for example with the asset price moving by the same ratio). 

If you shoot over some more info Community should be able to help maybe a screenshot?

Simple price comparison "SPOT SILVER" on 30Jan 2019, 20th Feb 2019 - both dates highest price reached 10th of July 2018 level. "BOOST SILVER 3x Leverage ETP" during 30th Jan and 20 Feb felt to rise by 7percent compared to its own price, recorded on 10th July 2018and this is a huge difference if you multiply this by 3 = that is 21% .  So it is obvious that the actual silver price was NOT followed - Probably it was some sort of corp action... Then why? 

[JamesIG]

On 22/04/2019 at 11:58, Minde1 said:

Simple price comparison "SPOT SILVER" on 30Jan 2019, 20th Feb 2019 - both dates highest price reached 10th of July 2018 level. "BOOST SILVER 3x Leverage ETP" during 30th Jan and 20 Feb felt to rise by 7percent compared to its own price, recorded on 10th July 2018and this is a huge difference if you multiply this by 3 = that is 21% .  So it is obvious that the actual silver price was NOT followed - Probably it was some sort of corp action... Then why? 

whilst I don't know the specifics of this ETF, I imagine the difference is in some part down to beta decay. You can read about that here

1.  https://study.com/academy/lesson/what-is-a-leveraged-etf-decay-risk-volatility.html
2. https://seekingalpha.com/article/1864191-what-you-need-to-know-about-the-decay-of-leveraged-etfs 
3. https://seekingalpha.com/article/4209344-leveraged-etf-decays-update