What is the fundamental structural difference between AGQ and GDXU?

AGQ is an exchange-traded fund, while GDXU is an exchange-traded note. An ETF typically holds underlying assets or derivatives directly to track an index. In contrast, an ETN is an unsecured debt instrument issued by a bank, in this case, Bank of Montreal. This distinction is critical because ETNs carry issuer credit risk. If the issuing bank defaults, holders may lose their investment, regardless of how the underlying gold miners index performs. ETFs generally do not have this specific type of counterparty risk.

How does leveraged daily rebalancing affect long-term returns?

Both AGQ (2x) and GDXU (3x) use daily rebalancing to maintain their stated leverage targets. This mechanism causes compounding effects that make long-term performance unpredictable. If the market fluctuates sideways, volatility drag can erode value even if the underlying index ends flat. Consequently, these instruments are designed for short-term tactical trading, not buy-and-hold strategies. For example, a 10% drop followed by an 11% recovery returns the underlying index to break-even, but the leveraged fund may show a significant loss due to the mathematical impact of daily resets.

Do AGQ and GDXU pay dividends or income?

Neither AGQ nor GDXU pays dividends. Both funds have a reported dividend yield of 0.00%. AGQ targets silver futures, which do not generate income, while GDXU tracks a gold miners index via a swap agreement that does not pass through any underlying dividends to the note holders. Therefore, investors relying on these products for income generation will find no periodic payouts. Any potential returns come solely from price appreciation, which is amplified by leverage. This makes them unsuitable for investors seeking regular cash flow or passive income streams.

How do the expense ratios compare, and what does this mean for costs?

Both AGQ and GDXU charge an identical expense ratio of 0.95%. This is a relatively high fee compared to traditional non-leveraged commodity ETFs. While the cost is the same, the impact may differ due to leverage. A 0.95% fee on a 3x leveraged product effectively erodes a larger portion of potential gains relative to the underlying asset's performance than it would on a 1x product. Investors must consider that these costs are deducted daily, significantly impacting returns over extended holding periods, especially in flat or volatile markets.

Which investing goals are typically associated with these funds?

These funds are typically associated with short-term, tactical trading goals rather than long-term portfolio diversification. AGQ is used by traders seeking amplified exposure to silver price movements, often as a hedge or speculative play on precious metals. GDXU is aimed at traders looking to magnify returns from gold mining stocks during bullish cycles. Both are suitable for investors who actively manage positions and understand the risks of leverage and compounding decay. They are generally not appropriate for passive investors or those with long-term horizons who cannot monitor positions daily.

How do the underlying market exposures differ between silver and gold miners?

AGQ tracks silver futures, providing direct exposure to the metal's price fluctuations. Silver is known for high volatility due to its dual role as a precious metal and industrial commodity. GDXU tracks an index of gold mining companies, not the metal itself. Miners are leveraged to gold prices; their earnings can amplify or dampen gold's moves. Thus, AGQ reflects silver spot dynamics, while GDXU reflects equity sentiment, operational efficiency, and gold price trends. These factors can cause the two assets to perform differently even when precious metals markets are directionally aligned.

Why might a 3x leveraged ETN behave differently from a 2x ETF in volatile markets?

GDXU offers 300% leverage compared to AGQ's 200%. This higher multiplier amplifies both gains and losses more aggressively. In volatile markets, the compounding decay effect is more severe for 3x products. A sharp swing can erode the value of GDXU faster than AGQ, even if the underlying indices recover slightly. Additionally, as an ETN, GDXU's tracking relies on a swap agreement with an issuer, introducing potential counterparty considerations that do not affect the futures-based structure of AGQ. This makes GDXU generally riskier during periods of extreme volatility.

How similar are the top holdings of AGQ and GDXU?

The top holdings of AGQ and GDXU share no overlap. AGQ's top holding is listed as IQMM, representing cash equivalents or collateral for futures contracts. GDXU's top holdings are not publicly disclosed in the same manner, as it is an ETN tracking an index via swaps rather than holding physical securities or futures directly. Consequently, investors cannot use standard holdings analysis to compare these two funds. The lack of shared top-10 holdings underscores their different structural approaches: AGQ holds assets for collateral and futures exposure, while GDXU relies on a note issuer's credit and derivative agreements.

What liquidity considerations should traders keep in mind?

AGQ has net assets of $1.5 billion, and GDXU has $1.3 billion, suggesting both are highly liquid instruments suitable for entering and exiting positions easily. High liquidity helps ensure that bid-ask spreads remain relatively tight, reducing transaction costs. However, traders should monitor average daily volume alongside total assets. While both funds are large, leveraged products can sometimes experience liquidity crunches during extreme market stress. Checking real-time volume and spread before trading is advisable to avoid slippage, particularly for larger orders that might exceed the normal daily trading activity.

AGQ vs GDXU

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare AGQ (ProShares Ultra Silver ETF) and GDXU (Bank of Montreal MicroSectors Gold Miners 3X Leveraged ETN) to examine fees, holdings, dividends and tracking approach. Both funds target leveraged commodity exposure with a 0.95% expense ratio; GDXU is an ETN. Explore the similarities and differences in structure, risk and how each fund tracks its respective market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AGQ

Metric

GDXU

0.95%

Expense Ratio

0.95%

0.00%

Dividend Yield

0.00%

$1.49B

Net Assets

$1.27B

Holdings

Dec 1, 2008

Inception Date

Dec 7, 2020

–

Index Tracked

–

Trading--Leveraged Commodities

Fund Category

Trading--Leveraged Commodities

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

AGQ vs ZSL

Compare AGQ and ZSL silver ETFs. Both share 0.95% expense ratio. Review fees, holdings, dividends and silver market tracking differences for research.

AGQ vs SLV

Compare AGQ and SLV silver ETFs. Review 0.95% and 0.50% expense ratios, dividend yields, holdings and leverage differences for informed research decisions.

Investment Analysis

AGQ

Pros

AGQ offers 200% leverage to silver, enabling significant potential gains in bullish commodity markets.
Established in 2008, AGQ benefits from a long operational history and a $1.5 billion asset base.
ProShares manages AGQ, a reputable issuer known for providing diverse leveraged and inverse ETF solutions.

Considerations

The 0.95% expense ratio is high, eroding returns significantly over extended holding periods.
AGQ pays no dividend, offering no income stream to investors during periods of stagnation.
Daily rebalancing causes compounding effects, making long-term performance unpredictable for non-daily traders.

GDXU

Pros

GDXU provides 300% leverage to gold miners, amplifying potential returns during strong bullish cycles.
The $1.3 billion net assets suggest high liquidity, facilitating easier entry and exit for traders.
Inception in 2020 aligns with recent volatility, offering a modern instrument for tactical positioning.

Considerations

An expense ratio of 0.95% is costly, particularly given the high volatility of leveraged products.
As an ETN, it carries issuer credit risk, unlike ETFs which hold underlying physical or synthetic assets.
Compounding decay from daily 3x leverage can severely impact returns during volatile or flat market periods.

About AGQ and GDXU

AGQ (AGQ)

The ProShares Ultra Silver ETF (AGQ) is a trading instrument designed to track the daily performance of silver prices, multiplied by two. This means if the price of silver goes up by 1%, AGQ aims to rise by approximately 2%. Conversely, if silver falls by 1%, AGQ will likely decline by about 2%. As an exchange-traded fund (ETF) focused on commodities, it holds derivatives like futures contracts and swap agreements to achieve this exposure, with a net asset value of around USD 1.49 billion. Investors often look at AGQ for short-term opportunities to leverage views on silver's price movements. However, due to its 2x leverage and daily reset mechanism, it may not be suitable for long-term buy-and-hold strategies, as compounding effects can cause returns to diverge from a simple multiple of silver's long-term performance.

GDXU (GDXU)

The Bank of Montreal MicroSectors Gold Miners 3X Leveraged ETN (GDXU) is an Exchange Traded Note designed to provide three times the daily performance of the underlying gold mining sector. Unlike traditional ETFs, this product is an unsecured debt obligation of Bank of Montreal, meaning it does not hold physical assets like gold or mining stocks directly. Investors are exposed to the credit risk of the issuer, alongside market volatility. With a leverage factor of 3X, gains can be amplified significantly, but losses can also escalate rapidly, potentially exceeding the original investment in short timeframes. The fund has an expense ratio of 0.95% and currently holds two components within its portfolio structure. It does not pay dividends, focusing instead on capital appreciation linked to sector movements. Due to its leveraged nature and reset mechanisms, this instrument is generally suited for experienced traders with a clear understanding of how compounding effects impact long-term returns versus daily rebalancing.

Buy AGQ or GDXU in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

AGQ vs GDXU

Fund Snapshot

Discover More Comparisons

AGQ vs ZSL

AGQ vs SLV

Investment Analysis

AGQ

Pros

Considerations

GDXU

Pros

Considerations

About AGQ and GDXU

Buy AGQ or GDXU in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the fundamental structural difference between AGQ and GDXU?

How does leveraged daily rebalancing affect long-term returns?

Do AGQ and GDXU pay dividends or income?

How do the expense ratios compare, and what does this mean for costs?

Which investing goals are typically associated with these funds?

How do the underlying market exposures differ between silver and gold miners?

Why might a 3x leveraged ETN behave differently from a 2x ETF in volatile markets?

How similar are the top holdings of AGQ and GDXU?

What liquidity considerations should traders keep in mind?

Fund Snapshot

About AGQ and GDXU

Discover More Comparisons

AGQ vs ZSL

AGQ vs SLV