ETFMG Prime 2x Daily Junior Silver Miners ETF (SILX)

The ETFMG Prime 2x Daily Junior Silver Miners ETF was a leveraged exchange-traded fund that aimed to deliver twice the daily return of an index of smaller silver mining and exploration companies. Because it reset its leverage every day, its performance over periods longer than one day could differ widely from two times the index return, making it a short-term trading tool rather than a long-term holding.

ETF Managers Group launched the fund on NYSE Arca in 2022 as a leveraged companion to its unleveraged junior silver miners ETF. Junior silver producers are highly volatile, and doubling that exposure made the fund swing sharply with silver prices. The fund attracted only modest assets. It also faced competition from other leveraged mining funds that had larger followings. Its value fell sharply as silver miners weakened.

In 2023 the trust decided to close the fund. Its final day of trading was July 13, 2023, after which it stopped processing creations and redemptions. The fund was liquidated on or about July 14, 2023, and remaining shareholders received the cash value of their shares. The fund's assets were small when the closure was announced, which made it uneconomic to keep running.

The closure was one of several fund shutdowns by ETF Managers Group, which later sold its ETF business. Leveraged funds that fail to attract trading volume are often closed quickly because their daily rebalancing and swap costs are high. Investors who still want exposure to junior silver miners can use unleveraged funds that track similar indexes, or the shares of individual mining companies.