(HZD) BetaPro Silver 2x Daily - Ratings and Ratios

The BetaPro Silver2x Daily Bear (TO:HZD) is an ETF designed to provide inverse exposure to the performance of silver, with a 2x leverage. This means it aims to deliver twice the opposite return of the daily performance of silver. Its a product offered by Horizons ETFs, a Canadian ETF provider.

As an inverse ETF, HZD is suited for investors who are bearish on silver, expecting its price to decline. The 2x leverage amplifies the inverse exposure, making it a potentially more rewarding but also riskier investment, as losses can be amplified just as gains can. The fact that its tied to the Morningstar CAD O/N Cash GR CAD index, although not directly related to silver, indicates the funds return is calculated in the context of Canadian currency and cash returns.

Analyzing the technical data, its clear that HZD has seen a decline from its 52-week high of $10.30 to its current price of $6.00, indicating a significant drop in value over the past year. The short-term moving averages (SMA20 and SMA50) are close to the current price, suggesting a relatively stable short-term trend. However, the SMA200 is significantly higher, indicating a longer-term downtrend. The ATR of 0.25, or 4.12% of the current price, suggests a moderate level of volatility.

From a fundamental perspective, the Assets Under Management (AUM) of CAD 3.61M is relatively small, which could impact liquidity and potentially increase the risk for investors. However, this does not directly influence the ETFs ability to meet its investment objective.

Forecasting the future performance of HZD requires analyzing both the technical and fundamental data. Given the current downtrend in silver prices and the ETFs inverse and leveraged nature, if silver prices continue to decline, HZD could potentially see gains. However, the leverage also means that any increase in silver prices could result in significant losses. Based on the SMA trends and the ATR, a cautious approach is warranted. If the downtrend in silver continues and the SMA20 and SMA50 remain below the SMA200, HZD might see some stability or slight gains. Conversely, a reversal in silvers price could lead to significant losses.

Investors should closely monitor silver price movements and adjust their strategies accordingly. Its also crucial to consider the risks associated with leveraged ETFs, including the potential for significant losses and the impact of compounding over time. As with any investment, a thorough risk assessment and alignment with the investors overall strategy are essential.