Does anyone know how etfs track metals markets? I had a position yesterday in silver and when the metal dropped a dollar or so within a few minutes and then recovered, the index does not seem to have got back to the original level. I used leveraged ETF AGQ which is now much lower than before for the same price of silver.
From the Yahoo Profile for AGQ:
The fund invests in any one of or combinations of the financial instruments (swap agreement, futures contracts, forward contracts, option contracts) with respect to the applicable fund's benchmark to the extent determined appropriate by the Sponsor.