An exchange traded note designed to follow natural gas futures fell much harder than the commodity on Monday as the ETN’s premium continues to erode.
The iPath Dow Jones-UBS Natural Gas ETN (NYSEArca: GAZ) was off 15% in afternoon trading Monday.
Both ETNs traded at a premium after their issuers halted the creation of new shares.
U.S. Natural Gas Fund (NYSEArca: UNG) slipped about 2% on Monday. GAZ fell harder because its premium to net asset value is coming down. [Focus Turns to Natural Gas ETN Premium After TVIX Crash]
iPath Dow Jones-UBS Natural Gas ETN
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.