The refusal of the U.S. Natural Gas ETF (NYSEARCA:UNG) to issue additional shares is not enough to protect investors. The latest decision from UNG managers is a move to protect the best interests of the fund. Investors should avoid UNG for the foreseeable future until the dust settles.
UNG's rejection of the additional approved units is a significant, if unsurprising, move in an ongoing saga. In early July, fund managers "ran out" of the pre-approved share allotment, forcing a halt in share creation. This jolt disconnected UNG's market price from its net asset value (NYSE:NAV), forcing the fund to… READ MORE