Interesting. I'll dig around and report back on what I find. I personally don't invest in commodity ETFs.Today Natural Gas reached $3.57 and Claymore ETF GAS is $5.52. I bought Claymore GAS on July 23/09 for $6.45 when Natural Gas was $3.57. I thought this was going to mirror the Natural Gas price itself. Any thoughts on this?
Apparently my example wasn't simple enough... you don't get it. I hope you stick to GICs.i believe that if investor owns 10 contracts that he bought @ $10, he now holds close to $120 in the simple example. If today's one-month future costs $12, then his 10 maturing contracts are also worth very close to $12.
Another dense post like the other guy wasn't bad enough, lol. In a proper world the ETFs would be created to track existing "benchmark" indexes, but in this world indexes are indeed fabricated after the fact as Leslie stated. Get with the times RI.Leslie. Give your head a shake. You are making something relatively simple into something complicated. The ETF tracks the benchmark index.
There's a difference between the spot price and this index. This index actually started December 19, 2007. The ETF February 6, 2008. There is no relevance to the index itself, it's a simple rolling month calculation. It's the daily spot pricing you are referring to which has indeed been around for years.Mogul. The NGX Canadian Natural Gas Index (the Alberta “one-month spot” physical market price) has been calculated each afternoon at 2:30pm since 1997. What do you mean it is fabricated after the fact?