There’s a lot of money flowing into commodities right now. The SEC and Commodity Futures Trading Commission (CFTC) want to make sure that things continue to check out as assets continue to move into them. Up until this point, they have been fair and efficient.
Total assets under management rose from approximately $700 million on April 1 to more than $4.3 billion now. This move, which occurred despite falling energy prices, exhausted the number of shares available for creations. The recent interest in this commodity ETF has made the premium and until more shares are created, the premium will continue.
- United States Natural Gas (UNG): down 46.9% year-to-date
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Kevin Grewal contributed to this article.