In the past couple of days I have noticed a discrepancy between 2 very similar leverage ETFs: Direxion Daily Nat Gas Rltd Bull 3X Shrs ( GASL ) and VelocityShares 3x Long Natural Gas (UGAZ ).
Both of these 3X leverage ETFs are based on natural gas. Now if any of you is living in some part of the U.S. you know the price of n. g. has gone up considerably in the past week due to the cold snap. But while UGAZ is acting like a 3X in relation to the price of natural gas GASL has been doing almost the opposite.
Chart above is YTD for UGAZ (blue shaded area), GASL (red line) and UNG (green).
Today (as of 3PM) UGAZ is up 7.03(25.71%) and UNG is up 1.92(8.42%) while GASL is down 0.81(2.25%).
The only difference I can see is that UGAZ trade volumes is 30x larger than GASL so maybe there's a bit of manipulation with the lower volume ETF?
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