Why New Shares Were Issued For The Natural Gas ETF (UNG)
“As we have pointed out before, without the means to grow in a contango market the fund is forced to shed positions at every roll to account for the incremental cost of the new futures it is forced to buy. Without new funds being invested, this would ultimately see the fund implode. Being about to roll, the (UNG) is now, however, in a position to open its doors to new money — delaying its implosion, by reinvesting into new futures and also evening out its massive NAV/price deviation,” Izabella Kaminska Reports From ft.com/alphaville.
“In other words, it has no choice. And while the deviation in its NAV/price may subside for the time being, unless the natural gas market suddenly reverses into massive backwardation there is no way investors will manage to recoup losses in the medium term,” Kaminska Reports.
Kaminska continues “What’s more, the fund itself states there is no longer any predictability to when it feels like being in an issuing cycle and when it doesn’t.” As the key par from their statement says:
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
CLICK HERE to get your Free E-Book, “Why It’s Curtains for the Euro”
Currently, UNG’s management believes that (UNG) will have the ability, under limited circumstances, to offer Creation Baskets as of the above-referenced date and meet its investment objective. If UNG’s management determines prior to the above referenced date that new circumstances have arisen that will prevent (UNG) from offering Creation Baskets, it will announce through a Form 8-K such changes in circumstances as soon as practicable.
Full Story: HERE
Here is a look at some of our other recent Natural Gas ETF Stories below:
UNITED STATES NATURAL GAS FUND (UNG) TO RESUME ISSUING SHARES
NG ETF-UNG: Chris Jylkka-Rough Times Ahead For Natural Gas
Cramer Says Sell The United States Natural Gas Fund (UNG)
A Look At How To Trade The Natural Gas ETF (UNG)
Get Broad Exposure To The Entire Natural Gas Industry With This ETF
Bearish Options Trading On The Natural Gas ETF (UNG) Rose To A Record
VIDEO: The Natural Gas ETF (UNG) Is Distorting The Gas Market
Take A Look At Some Other Options For The Natural Gas ETF (UNG)
Natural Gas ETF Continues To Get All The Attention (UNG)
GET A FREE TREND ANALYSIS FOR ANY ETF HERE!
Most Comments