Leveraged Natural Gas ETN Proving Very Popular Among Traders
ETF Daily News | Nov 07, 2017 01:25AM ET
Last week we pointed out recent inflows in a levered Bull Natural Gas linked product from VelocityShares, VelocityShares 3x Long Natural Gas linked to S&P GSCI Natural Gas Excess Return (NYSE:UGAZ) (Expense Ratio 1.65%, $975 million AUM), as the fund has reeled in nearly $200 million since the second to last week in October via creation activity.
Interestingly, UGAZ is the largest “Natural Gas” linked product in the U.S. landscape at the moment, bigger than even the $619 million “benchmark” name in the space United States Natural Gas (NYSE:UNG) (Expense Ratio 1.12%). UNG debuted way back in 2007 and has recently attracted about $75 million in new assets via creation appetite, but UGAZ, which debuted in 2012 has proven to be a favorite of traders and short term directional speculators whom may be playing Natural Gas prices through ETPs.
For example, UGAZ averages more than 15.6 million shares traded on an average daily basis as compared to UNG’s 6.7 million shares, and UGAZ’ sister ETN VelocityShares 3x Inverse Natural Gas linked to S&P GSCI Natural Gas Excess Return (NYSE:DGAZ) (Expense Ratio 1.65%) is rather popular as well averaging 3.8 million shares on an average daily basis and slotted as the third largest ETP in the Natural Gas category with about $107 million in AUM.
Judging from the huge move higher that we have seen in Natural Gas prices this morning, the recent inflows in the ETP space especially concerning UGAZ appear to be very well timed.
The VelocityShares 3x Long Natural Gas linked to S&P GSCI Natural Gas Excess Return (NYSE:UGAZ)) was trading at $10.31 per share on Monday morning, up $1.13 (+12.31%). Year-to-date, UGAZ has declined -77.68%, versus a 16.79% rise in the benchmark S&P 500 index during the same period.
UGAZ currently has an Leveraged Commodities ETFs category.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.