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.
Traders have been zeroing in on the natural gas product after the sharp decline in VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX). [TVIX Fallout]
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
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