The managers behind the United States Natural Gas (NYSEArca: UNG) exchange traded fund (ETF) have filed to resume the creation of new shares. But the move could have a big impact on the fund’s price.
In a filing with the Securities and Exchange Commission (SEC), the notice acknowledges that if new share are created, even on a smaller scale, the premium at which the fund is currently trading could be eliminated. On Friday, UNG had been trading at a more than 16% premium, Don Dion for TheStreet reports.
The creation won’t resume until Sept. 28, but it may have an immediate impact on UNG’s share price.
As a result of expected regulations from the Commodity Futures Trading Commission (CFTC), several funds halted the issuance of new shares. Regulators are still considering more limits and impositions to place upon the trading of these shares, but it could lead to unintended consequences.