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BetaPro Natural Gas Leveraged Daily Bull ETF T.HNU

Alternate Symbol(s):  HNUZF

HNUs investment objective, is to seek daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to up to two times 200 Percentage the daily performance of the Horizons Natural Gas Rolling Futures Index the Underlying Index, Bloomberg ticker CMDYNGER. HNU is denominated in Canadian dollars. Any US dollar gains or losses as a result of HNUs investment are hedged back to the Canadian dollar to the best of its ability. The Fund To be successful in meeting its investment objective during the period, HNUs net asset value should have gained up to two times as much on a given day, on a percentage basis, as its Underlying Index rose on that given day. Conversely, HNUs net asset value should have lost up to two times as much on a given day, on a percentage basis, as its Underlying Index declined on that given day.


TSX:HNU - Post by User

Post by buddhaboyon Jun 08, 2009 6:20pm
475 Views
Post# 16053269

High of $192??

High of $192??I don't fully understand the potential of this play.  It reached its 52-week high back when NG was at its high of over $13 and then plummeted along with the price of NG until it reached where it is today (so far, so good).  Now, this ETF is supposed to double the moves of the price of NG, is it not?  For NG to get from its present price back to its 52-week high requires an increase of 400% which would mean the price of this fund should increase 800% bringing it only up to about $50.  Obviously I'm missing something here and would appeciate some enlightenment.  How is it possible that this fund was ever worth $192 a unit?  IF the price of NG returns to $13+, does that mean this fund will retrace its high of $190+??

I'm trying to find the downside in all this, but any way I look at it, this play is an easy triple in the mid-term.  $100 000 in, $300 000 out within 2 or 3 years!....I've gotta be missing something!  Anyone??

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