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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 inves20on Feb 29, 2016 4:41pm
170 Views
Post# 24606600

Tenth Day

Tenth Dayyou are missing the point of these vehicles.
They are only ment to be held a few days. The prospectus tells that these have a natural erossion on the cantango or backwardation month to month. 
Also the daily percentage move in price is directly transformative to a multiple of two and that is how the trading price is set on the open on TSX, but NG trades all night too and can kill overnight and overnight holders are stuck or shut out  depending on which way they wanted to play. 
It has nothing to do with the so called underlying stocks that anchor the fund, they do nothing to set the price and are only a security deposit that shows there is something tangible on the books.
Most of the value is in traders minds, that there is some confidence that someone will buy or sell at any given moment.
If you are on the right side of the trend you can make a lot of money in a week and lose a lot of money in a week on the wrong side.
So HNU is the dog this month and HND was the golden goose.
These reverse, but never recover the natural erossion percentage game.
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