Leveraged long ETPs that may see an uptick in activity in the near term, given the recent path of Natural Gas prices include UGAZ (VelocityShares 3X Long Natural Gas ETN, Expense Ratio 1.65%) and BOIL (ProShares Ultra DJ-UBS Natural Gas, Expense Ratio 0.95%).
It is important that the end investor recognize the limitations of futures based ETPs here, and the potential dislocation that has historically occurred versus spot returns of the commodity itself, as well as the consequences of daily leveraging in case of UGAZ and BOIL for example.
U.S. Natural Gas Fund (NYSEArca: UNG)
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