Dallas, Texas 02/24/2014 (FINANCIALSTRENDS) – VelocityShares 3X Inverse Natural Gas ETN linked to the S&P GSCI Natural Gas INdex Excess (NYSEARCA:DGAZ) has since been one of the prime examples of how investment professionals are moving the once famous tools which day traders- Exchange Traded Funds – engaged in to move faster are today part of investment portfolios of retail, private and small investors.
VelocityShares 3X Inverse Natural Gas ETN linked to the S&P GSCI Natural Gas INdex Excess (NYSEARCA:DGAZ) is one of the more naturally –fitting funds for small investors. How? The ETN has been tracking the daily returns of the S&P GSCI Natural Gas Index Excess Return Index for nearly 3 times per day. Incidentally, this is one index which has been moving very erratically towards the latter half of January. The spates of rise and falls did give rise to some sharp swings on the ETF.
VelocityShares 3X Inverse Natural Gas ETN linked to the S&P GSCI Natural Gas INdex Excess (NYSEARCA:DGAZ) clocked the fund moving from 32.2% as of Jan 29, to 27.9 % on Jan 30, 2014.. Besides, later that week, it also noticed the movement from 21.7% as of Feb 4 and a sharp downward slide by nearly 11% on Feb 5. However, the given complexity of the format to track the fund, meant it was unable to sustain tracking over long term tracking. Therefore, this fund did see that he stock fell by 7.7% over the weeks of Jan 27 to Feb 7. It was found that the overall loss for the fund was in the region of 7.7% when the index was at a 2.1% gain.
VelocityShares 3X Inverse Natural Gas ETN linked to the S&P GSCI Natural Gas INdex Excess Return (NYSEARCA:DGAZ) it appears is unlike one of the worst ETNs which could prove to be wrong-instruments for long term investors. Back in 2013, when Credit Suisse VelocityShares Daily 2x VIX Short-Term ETN dropped by nearly 92% during one of the least volatile years, most investors appeared to be hurt.
