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.
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!
Natural Gas ETF Suspends New Shares: Are There Alternatives? [View article]
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!
Barron's Banks on $100 Oil [View article]