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One of the disadvantages of the bull natural gas ETF is that has high costs from its hedging and futures contracts so will never track the underlining commodity. But if one was a bear on NG why not short the bull ETF and likewise if a bull short the bear fund?

Or short both?
 

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One of the disadvantages of the bull natural gas ETF is that has high costs from its hedging and futures contracts so will never track the underlining commodity. But if one was a bear on NG why not short the bull ETF and likewise if a bull short the bear fund?

Or short both?
Or better yet avoid these altogether. You will get your one way ticket to the poor house, guaranteed.
 

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Or better yet avoid these altogether. You will get your one way ticket to the poor house, guaranteed.
That's probably the right advice for 95% of investors. As for shorting both, Avner Mandleman wrote about this in the Globe and Mail either late 09 or early this year. What he points out is that shorting both is really a bet on volatility. The problem is finding enough shares of each to borrow so that you can short. And institutions are all over that trade so, when he wrote his article, he said it was almost impossible to do because of the scarcity of shares available to borrow.

Added: Let clueless investors be your signal for opportunity
 

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I could never understand why Canadians just don't trade futures contracts directly. What's the point of putting up with all this Horizons BetaPro absurd when with just U$7000 you can go long or short one crude oil, natural gas or gold contract (this is margin requirement for holding overnight), or with U$2600 you can play one crude oil contract during pit trading hours (09:00 - 14:30). Here are a few screenshots with margin preview from Interactive Brokers' TWS:

http://shup.com/Shup/356012/11053101530603201010042.png

http://shup.com/Shup/356013/11053101524060320101011.png

http://shup.com/Shup/356014/11053101542060320101012.png
 
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