“People are trying to pick the bottom in natural gas right now, not realizing that this vehicle they’re choosing to invest in might be broken,” Dave Lutz, head of ETF trading and strategy at Stifel Nicolaus, told Bloomberg. [ETFs Trading at Big Premiums and Discounts]
Regulators are looking into the recent plunge in a volatility product, VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX). A big premium in the VIX futures product emerged after issuer Credit Suisse halted the creation of new shares in February. However, the premium collapsed late last month, resulting in large losses for some investors that weren’t related to the direction of the tracking index. [SEC Reviewing TVIX]
GAZ, the natural gas ETN, was up 10.5% in afternoon trading Monday. U.S. Natural Gas Fund (NYSEArca: UNG), an exchange traded fund that follows natural gas futures, rose 2%.
GAZ has a market cap of $63.5 million and average daily trading volume of nearly 878,000 shares, according to MarketWatch.
iPath Dow Jones-UBS Natural Gas ETN
