Seeking Alpha
  • FREDDESAIN
    If UNG followed the commodity nat gas price it should be trading around $23.75. Why's it below $22?
    11/1/12
    Reply (10)
    • jdub2788: Because you bought it.
      11/1/12
    • Hypnos7: I had the same question -- probably has to do with the term structure of the futures held by the ETF
      11/1/12
    • Hypnos7: I could a see a gap-up in front month contracts due to Sandy, while not affected two months or further out ...
      11/1/12
    • Hypnos7: That said, the UNG Yahoo profile says it invests in front/near month.
      11/1/12
    • Hypnos7: This leaves contango: even though the spot price is going up, UNG is losing money rolling their contracts forward.
      11/1/12
    • Hypnos7: http://bit.ly/Y6kfei
      11/1/12
    • FREDDESAIN: Thanks for the link Hypnos7
      11/1/12
    • goferit: UNG managers ripped off their investors. They never adjusted a "gap-up" for Mon & Tues Nat Gas movement.
      11/2/12
    • Hypnos7: The gap up in the NG ticker was due to Nov contracts expiring on Oct. 29th. Same thing happened the end of September.
      11/2/12
    • Hypnos7: This means natgas is in contango. You wouldn't make any more money if you were rolling the futures yourself.
      11/2/12