A recent study by Nikolaos A. Kyriazis, a researcher at the University of Thessaly in Greece, investigated the impact of leveraged ETFs on financial stability and returns.
The research analyzed data from various money-based ETFs, including ProShares Ultra Gold ETF (UGL), ProShares Ultra Silver ETF (AGQ), and ProShares Ultra Bitcoin ETF (BITU).
According to the study, gold is the main stabilizer, while silver generates systemic fragility. Cryptocurrency ETFs can switch roles with precious metals ETFs.
The study also highlighted that leveraged ETFs can turn supposedly defensive assets into regime-dependent risk trades, and that investors should be wary of more volatile and risky quasi-currencies like silver.