1-Star ETNs Poised to Plunge: VelocityShares 3x Inverse Natural Gas?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, VelocityShares 3x Inverse Natural Gas ETN (NYSE: DGAZ  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at VelocityShares 3x Inverse Natural Gas  and see what CAPS investors are saying about the ETN right now.

VelocityShares 3x Inverse Natural Gas facts

Inception February 2012
Total Net Assets $16.1 million
Investment Approach Seeks to replicate, net of expenses, three times the opposite (inverse) of the S&P GSCI Natural Gas Index. The index comprises futures contracts on a single commodity and is calculated according to the methodology of the S&P GSCI Index.
Expense Ratio 1.65%
1-Week / 1-Month / 3-Month (32.5%) / (48.7%) / (56.9%)
Alternatives VelocityShares 3x Long Natural Gas ETN
United States Natural Gas

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 137 members who have rated VelocityShares 3x Inverse Natural Gas believe the ETN will underperform the S&P 500 going forward.

A couple of months ago, one of those Fools, All-Star TerryHogan, succinctly summed up the bear case for our community: "First of all, while [natural gas] hasn't exactly been a stellar investment as of late, it doesn't really have much lower to possibly go. Second of all, 3X leveraged ETFs are crap long-term."

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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