Comments on: ETF Death by Contango http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/ Investment Disciplines and Timely Advice. Fri, 10 Feb 2012 21:15:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Domingo E. Roberts http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-15013 Domingo E. Roberts Tue, 03 Aug 2010 10:11:27 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-15013 They failed because they did not attract enough investor interest, and therefore not enough assets, and therefore did not generate enough fees to remain viable and profitable for their sponsors. When ETFs are liquidated, the money is returned to the investors. However, I typically recommend selling them before the liquidation process begins. They failed because they did not attract enough investor interest, and therefore not enough assets, and therefore did not generate enough fees to remain viable and profitable for their sponsors. When ETFs are liquidated, the money is returned to the investors. However, I typically recommend selling them before the liquidation process begins.

]]> By: UNG: The unNatural Gas ETF | Top Equity News http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-11776 UNG: The unNatural Gas ETF | Top Equity News Sat, 16 Jan 2010 19:15:19 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-11776 [...] The chart below sure tells us what is happening with (UNG) – the biggest natural gas related ETF available. Look at the differential between the Natural Gas pricing (futures) and the ETF. We have written about this before HERE. [...] [...] The chart below sure tells us what is happening with (UNG) – the biggest natural gas related ETF available. Look at the differential between the Natural Gas pricing (futures) and the ETF. We have written about this before HERE. [...]

]]> By: 10 Common Myths About ETF Investing « FiNETIK – Asia and Latin America – Market News Network http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-10718 10 Common Myths About ETF Investing « FiNETIK – Asia and Latin America – Market News Network Thu, 26 Nov 2009 15:52:20 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-10718 [...] correlated with spot prices, the performance in certain environments can deviate significantly (see this article for a more in-depth [...] [...] correlated with spot prices, the performance in certain environments can deviate significantly (see this article for a more in-depth [...]

]]> By: Ten Myths About ETF Investing | ETF Database http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-10531 Ten Myths About ETF Investing | ETF Database Wed, 25 Nov 2009 07:02:06 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-10531 [...] correlated with spot prices, the performance in certain environments can deviate significantly (see this article for a more in-depth [...] [...] correlated with spot prices, the performance in certain environments can deviate significantly (see this article for a more in-depth [...]

]]> By: UNG: The unNatural Gas ETF | Stocks and Sectors http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-10288 UNG: The unNatural Gas ETF | Stocks and Sectors Tue, 17 Nov 2009 15:51:11 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-10288 [...] The chart below sure tells us what is happening with (UNG) – the biggest natural gas related ETF available. Look at the differential between the Natural Gas pricing (futures) and the ETF. We have written about this before HERE. [...] [...] The chart below sure tells us what is happening with (UNG) – the biggest natural gas related ETF available. Look at the differential between the Natural Gas pricing (futures) and the ETF. We have written about this before HERE. [...]

]]> By: unNatural Gas ETF – (UNG) is This for Real? : The Disciplined Investor http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-10232 unNatural Gas ETF – (UNG) is This for Real? : The Disciplined Investor Mon, 16 Nov 2009 14:56:31 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-10232 [...] The chart below sure tells us what is happening with (UNG) – the biggest natural gas related ETF available. Look at the differential between the Natural Gas pricing (futures) and the ETF (UNG). We have written about this before HERE. [...] [...] The chart below sure tells us what is happening with (UNG) – the biggest natural gas related ETF available. Look at the differential between the Natural Gas pricing (futures) and the ETF (UNG). We have written about this before HERE. [...]

]]> By: Nic http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-9524 Nic Fri, 09 Oct 2009 22:18:35 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-9524 With gas price not changed over the last three month (Jul - Oct 2009), UNG lost over 15% in price over the same period....hope someone may catch them for misleading investors... they make it look like on their webpage that they track gas sport price....when they don't ! With gas price not changed over the last three month (Jul – Oct 2009), UNG lost over 15% in price over the same period….hope someone may catch them for misleading investors… they make it look like on their webpage that they track gas sport price….when they don't !

]]> By: Andrew Horowitz http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-7116 Andrew Horowitz Sun, 05 Jul 2009 16:28:04 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-7116 It would seem that the contango with both oil and nat gas should have offset<br /><br /><br />But it is a pricing issue now and this weekends rouge oil trader story as well as record supplies of diesel and gasoline should make se take notice<br /><br /><br />Still , nat gas is ridiculously low and may spark a switch to that furl if oil is staying above $60<br /><br /><br />Andrew It would seem that the contango with both oil and nat gas should have offset

But it is a pricing issue now and this weekends rouge oil trader story as well as record supplies of diesel and gasoline should make se take notice

Still , nat gas is ridiculously low and may spark a switch to that furl if oil is staying above $60

Andrew

]]> By: Adrian http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-7114 Adrian Sun, 05 Jul 2009 09:16:00 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-7114 I thought that to overcome the contango problem for crude oil I could use USL or DBO instead of USO. But for natural gas I think there is no worth long term ETF investment, because UNG has a similar problem to USO. One nice investment could be to have a short position in USO and a long one in USL or DBO. Does anyone of you know an on line broker which let use the money of the short position for buying a long position? I thought that to overcome the contango problem for crude oil I could use USL or DBO instead of USO. But for natural gas I think there is no worth long term ETF investment, because UNG has a similar problem to USO.
One nice investment could be to have a short position in USO and a long one in USL or DBO. Does anyone of you know an on line broker which let use the money of the short position for buying a long position?

]]> By: Andrew Horowitz http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-6744 Andrew Horowitz Tue, 16 Jun 2009 00:50:04 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-6744 --<br />We are entering a small spread of ung:USO as some of contango will me covered by short oil<br /><br /><br />But cannot for ira accounts<br /><br /><br />A –
We are entering a small spread of ung:USO as some of contango will me covered by short oil

But cannot for ira accounts

A

]]> By: snoopyjc http://www.thedisciplinedinvestor.com/blog/2009/06/15/etf-death-by-contango/comment-page-1/#comment-6739 snoopyjc Mon, 15 Jun 2009 17:33:44 +0000 http://www.thedisciplinedinvestor.com/blog/?p=3712#comment-6739 I'm swing trading UNG, so the contango doesn't matter that much. Recently in at 12.85, then out at 17; back in at 14.25, and I just took 1/3 off at 15.25 and moved my stop up to break-even. I was actually playing the contango in the Oil ETFs by buying DBO and shorting OIL, as OIL did a much worse job at rolling. You can type "DBO:OIL" into stockcharts.com and see what I mean - see the "high contango" period from July'08 until Feb'09. Lately that contango has pretty much fizzled out, though, so I took the trade off. I wonder if there is a way to profit from the congango in UNG?? --joe I'm swing trading UNG, so the contango doesn't matter that much. Recently in at 12.85, then out at 17; back in at 14.25, and I just took 1/3 off at 15.25 and moved my stop up to break-even.

I was actually playing the contango in the Oil ETFs by buying DBO and shorting OIL, as OIL did a much worse job at rolling. You can type "DBO:OIL" into stockcharts.com and see what I mean – see the "high contango" period from July'08 until Feb'09. Lately that contango has pretty much fizzled out, though, so I took the trade off.

I wonder if there is a way to profit from the congango in UNG??
–joe

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