Dallas, Texas 02/12/2014 (FINANCIALSTRENDS) – 2013 was considered as a banner year for equities and the main reason behind this is seen as the S&P 500 Index’s increase of almost 29 percent and that was fueled by easy money policies offered by Federal Reserve and lifting returns of equity-focused ETFs in the process.
But the current year that is 2014 brought some bad news and that was reduction in the easy money policy by the Federal government. Another main reason was a slowdown in China and weakness in all the emerging markets such as Thailand, Turkey, India and Brazil. Moreover till now the S&P is down 5.0 percent. When you enter into leveraged and inverse ETFs, the best ETFs year-to-date include Velocity Shares 3X Long Natural Gas ETN (DGAZ), that year-to-date have returned 50.9 percent
DGAZ provided almost 3x the daily return of the S&P GSCI Natural Gas Index Excess Return which is a production-weighted index of world natural gas producers listed in Organization for Economic Co-operation and Development countries. The main drawback is that this fund has a high expense ratio—1.65 percent, or $165 for every $10,000 invested.
An Overview of the Fund
Velocity Shares 3X inverse Natural Gas ETN (NASDAQ:DGAZ) that is basically (NASDAQ:DGAZ) an independent ETF fund that has got a market capitalization of about $319.54 million and the last price on which it closed was around $3.77. If we talk about the 52 week high of this ETF fund then it is around $2.74 and its 52 week high is around $23.05.
The above said data clearly suggests that this is the right time to enter into this asset and once the markets are going to stabilize then one can expect very good returns. But for that one need to keep a long term horizon of 1 to 2 years.
