Velocityshares 3X Long Natural Gas ETN (UGAZ)

[Schneidku40]

Yeah but by the same token, last November gas was at $3.8 and UGAZ was at $12. By late January gas was at $4.6 and UGAZ was at $40. Only a 21% increase in gas price but 233% increase in UGAZ, totally obliterating the 3x ratio (that was an 11x ratio). The month-to-month contract swings play a huge part in these ETFs. Sometimes they work in your favor. Obviously DGAZ would have been on the very short end of that same stick and probably would have looked more like a -11x ratio.

From June to July this year gas went down from $4.8 to $4, a 17% decrease. DGAZ went from $3 to $4.80, a 60% upswing, turning DGAZ into a 3.5x ETF.