Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.
ProShares Ultra Bloomberg Natural Gas ETF offers 2x daily exposure to natural gas futures, appealing to active traders seeking amplified volatility. BOIL is best used for short-term trades, due to significant risks, including value decay, compounding effects, and high volatility in natural gas prices. Long-term natural gas price support may come from increased domestic power plant demand and international trade agreements, but BOIL is not recommended for buy and hold.
BOIL aims to deliver 2x daily natural gas price movements but suffers from significant value decay over time due to fees and compounding. Long-term U.S. energy export trends are unlikely to benefit BOIL, as gains require an immediate, sharp rise in natural gas prices. BOIL is unsuitable for individual investors; its structure and price decay make it more appropriate for short-term institutional trading.
| - Industry | - Sector | - CEO | LSE Exchange | GB00B01QGH57 ISIN |
| US Country | - Employees | - Last Dividend | 7 Nov 2024 Last Split | - IPO Date |
The fund aims to achieve its investment objective by primarily investing in Natural Gas futures contracts. It is designed to provide investors with a way to gain exposure to the price movements of Natural Gas. Recognizing the volatility and unpredictability of the commodities market, the fund is also prepared to invest in swaps as alternative instruments under certain conditions. Such conditions include emergencies like natural disasters or terrorist attacks, disruptions like trading halts or flash crashes, or situations deemed by the Sponsor as impractical or inadvisable for futures trading. These provisions allow the fund to maintain flexibility and pursue its investment objective despite market unpredictability or illiquidity.
The primary investment vehicle of the fund, these contracts are agreements to buy or sell a specific amount of natural gas at a predetermined price on a set future date. By investing in these contracts, the fund seeks to capitalize on price movements in the natural gas market.
As a secondary investment strategy, the fund may invest in swaps, particularly in scenarios where the futures market is disrupted or investing directly in futures contracts is not considered practical or advisable. Swaps are financial derivatives that allow the fund to exchange the cash flows or other financial assets with another party. This could be used as a way to hedge against market volatility, manage risk, or gain exposure to natural gas prices under less conventional circumstances.