RE:RE:Traders make huge $$$ shorting BOIL UNG HNUI am long HNu at this very moment - I am admittedly gambling - but this Horizons ETF is deeply flawed IMO. In 27 months natgas is flat, Antero (unhedged US natgas stock) more than double and HNU is down 80% - that's right if you put in $100 in April 2021, you'd have less than $20 left!!!
It is simple to understand why. Future natgas prices are higher than present ones (contango). So when HNU rolls over $1000 worth of natgas contracts, they sell a contract for less than they buy a similar contract for moments later. The US equivalent BOIL does this 6x a year, I suspect HNU is the same. So in a contango situation of stable natgas prices, they end up with less and less natgas contracts underlying your ETF shares.
Imagine if you repeatedly did that with a fixed initial amount of money invested in a stock - buy for 15, sell for $14, buy again for $15, sell again for $14. You'd eventually have no shares or money left.Q
You can see on MarketWatch the price of natgas futures - much higher than now. So ceteris paribus ie if spot gas prices don't change your future losses are staring you in the face.
HNU only works very short term when natgas prices rise suddenly or if there is no contango. Otherwise you need a big rise in natgas to compensate for your ongoing contango losses.
Again, want to be entertained, follow Shep rules on twitter.
As for this other poster, he is either clueless, preaching for the choir or much worse.