Velocityshares 3X Inverse Natural Gas Etn (DGAZ)

[Swing Party]

A case study that supports the idea of shorting NG via DGAZ.

05/20/2015 the front month contract - NGN15 (July15) - open at 3.005
DGAZ opened at 25.00 100% in July contract
UGAZ opened at 3625.00 100% in July contract


10/01/2018 the front month contract – NGX18 (Nov 18) – open at 3.007
DGAZ opened at 17.69 100% in the NOV contract
UGAZ opened at 74.43 100% in the NOV contract

Natural gas was essentially priced the same opening those two dates, however during the 3 1/2 years between those two dates:
DGAZ decreased in value 29.2%
UGAZ decreased in value 97.9%

Contango is your friend when you trade DGAZ