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

BetaPro Natural Gas Leveraged Daily Bull ETF

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Comment by houbahopon Feb 13, 2014 5:24pm

162 Views

Post# 22207271

RE:RE:RE:RE:feb 6

Thanks for your input inves20.

Allow me a note.

I understand you have to compare HNU's closing at 4PM with the price of NG at 4PM.
In the present case, yesterday, HNU closed at $15.56 when NG was at $4.822.

Today, HNU closed at $16.62 when NG was at $5.19.

HNU gain was 6.81%. NG gain was 7.63%.
In theory, HNU should have gained 7.63*2 = 15.2% or $17.95.

I understand NG April contract has risen by 1.6% at 4PM from yeasterday's 4PM price.

From these numbers, it implies BetaPro has already substancially rolled their March contracts into April, thus following closer the return given by the April contract (1.6%*2 = 3.2%) instead of the March contract (15.2%). If most of this discrepency is not explained by this factor, I suspect BetaPro will lose many players down the road. From the outside, how can we prove it is not a scam?.

I totally agree with you with the way these ETFs are constructed. Like Options, they lose value as time goes by, converging inevitably towards zero, its holders
"dying from a slow painfull death from thousand falling knives" LOL!

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