Comments on: Oil Prices May Get Worse; Steel and Natural Gas ETFs Are Keeping Pace http://www.etftrends.com/2008/04/steel-natural-g.html Keeping a grip on exchange traded funds (ETFs) Sun, 08 Nov 2009 02:14:36 -0800 http://wordpress.org/?v=2.8 hourly 1 By: Tom Lydon http://www.etftrends.com/2008/04/steel-natural-g.html/comment-page-1/#comment-2677 Tom Lydon Tue, 09 Dec 2008 19:14:55 +0000 http://etftrends.com.s14057.gridserver.com/2008/04/oil-prices-may-get-worse-steel-and-natural-gas-etfs-are-keeping-pace.html#comment-2677 Hi David, These ETFs use futures contracts, which can roll to the second month prior to the actual expiration date. So, these funds are not necessarily going to follow the spot price of oil, natural gas or gasoline. Here's a story we did when the price of oil shot up drastically on day in September, but USO didn't follow suit. This should help clarify things: http://www.etftrends.com/2008/09/oil-price-jump-shows-inner-workings-of-etf.html Hi David,

These ETFs use futures contracts, which can roll to the second month prior to the actual expiration date. So, these funds are not necessarily going to follow the spot price of oil, natural gas or gasoline.

Here’s a story we did when the price of oil shot up drastically on day in September, but USO didn’t follow suit. This should help clarify things:
http://www.etftrends.com/2008/09/oil-price-jump-shows-inner-workings-of-etf.html

]]> By: david kneapler http://www.etftrends.com/2008/04/steel-natural-g.html/comment-page-1/#comment-2675 david kneapler Tue, 09 Dec 2008 14:36:28 +0000 http://etftrends.com.s14057.gridserver.com/2008/04/oil-prices-may-get-worse-steel-and-natural-gas-etfs-are-keeping-pace.html#comment-2675 Yahoo states USO up 8.25% and UNG down 8% YTD. I did not see a 20% increase in UNG's price in he last month. Indeed, the closing price for NG yesterday was 6.Please clarify. Yahoo states USO up 8.25% and UNG down 8% YTD. I did not see a 20% increase in UNG’s price in he last month. Indeed, the closing price for NG yesterday was 6.Please clarify.

]]>