Seeking Alpha

dieuwer » Comments » AMP

  • Natural Gas ETF Suspends New Shares: Are There Alternatives?  [View article]
    The problem with becoming a closed-end fund is that no new capital is entering the ETF. Thus, with a fixed capital base and very high rollover costs due to the huge contango in natural gas, the fund will rapidly loose its capital.

    Look at this table: www.unitedstatesnatura...

    UNG holds September contracts and plan to sell for $3.238, but must buy the October contracts for a minimum of $3.638. An instant ~12% hit! If the fun keeps loosing money this way, the NAV will be HALVED in 5 - 6 months!
    Aug 17 21:13 pm |Rating: +2 -2 |Link to Comment
More on AMP by dieuwer
Comments by Ticker
AA, AAPL, ABAT, ABX, ACI, ACWI, ADM, AEM, AGPPY.PK, AGU, AIG, ALTI, AMP, AMR, ANDE, ANR, APA, APC, ASIA, AU, AUREF.PK, AUY, AXL, AXPW.OB, BA, BAC, BAESY.PK, BCON, BCS, BDC, BHP, BIK, BIV, BK, BKF, BND, BNI, BNPQY.PK, BOLT, BP, BRF, BRK.A, BRK.B, BSC, BSV, BTU, CAF, CAT, CBAK, CCTYQ.PK,
dieuwer's
Comments Stats
346 comments
Rating: 320 (441 - 121 )