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Natural Gas ETF Protects Self, Not investors

|Includes:AMP, FAS, FAZ, SRS, The United States Natural Gas ETF, LP (UNG), USB

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

Stocks: UNG, FAS, FAZ, SRS, USB, AMP