Velocityshares 3X Long Natural Gas ETN (UGAZ)

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UGAZ may lose 2 percent or 10 percent a month depending on conditions. But 3x ETFs such as UGAZ see losses equal to the contango multiplied by 3, meaning that some months may see as much as a 10% degradation in value of the fund and 40-50% over the course of a typical year. On the other hand, ETFs whose underlying futures trade with a nearly flat futures strip (or, rarely, in backwardation) will see minimal rollover losses on a monthly basis. Such funds include silver, gold, and occasionally oil.