FYI: Over the years we have frequently commented on the potential dangers of holding leveraged ETNs/ETFs for longer than a day or two, and while the potential pitfalls are well known, they can’t be stressed enough. This is especially the case with triple leveraged ETFs (3X). Two of the more popular 3X ETFs, in terms of volume, are the VelocityShares 3X Long Natural Gas ETN (UGAZ) and the VelocityShares 3X Inverse Natural Gas ETN (DGAZ). Like oil, natural gas has had a rough quarter to start 2015, and with less than two trading sessions left in the quarter, the price of the front month future contract for natural gas has declined 7.7%.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/rough-quarter-for-leveraged-natural-gas-etfs/
