VelocityShares Adds Leveraged, Inverse Funds for Commodities

ETF Trends

VelocityShares , an exchange traded product provider known for its high-octane funds that magnify the market’s returns, has launched a suite of inverse and leveraged energy and copper ETNs, expanding its line of long and short commodity funds.

The new ETN listings include:

  • VelocityShares 3x Long Brent Crude ETN (NYSEArca: UOIL - News) has an investor fee factor of 1.35%.
  • VelocityShares 3x Inverse Brent Crude ETN (NYSEArca: DOIL - News) has an investor fee factor of 1.35%.
  • VelocityShares 3x Long Crude ETN (NYSEArca: UWTI - News) has an investor fee factor of 1.35%.
  • VelocityShares 3x Inverse Crude (NYSEArca: DWTI - News) has an investor fee factor of 1.35%.
  • VelocityShares 3x Long Natural Gas ETN (NYSEArca: UGAZ - News) has an investor fee factor of 1.65%.
  • VelocityShares 3x Inverse Natural Gas ETN (NYSEArca: DGAZ - News) has an investor fee factor of 1.65%.
  • VelocityShares 2x Long Copper ETN (NYSEArca: LCPRF.PK - News) has an investor fee factor of 1.35%
  • VelocityShares 2x Inverse Copper ETN (NYSEArca: SCPR - News) has an investor fee factor of 1.35.

The ETNs are based on commodities futures contracts in each of their respective commodities markets.

Potential investors should be aware that ETNs are subject to the creditworthiness of the issuing bank, Credit Suisse AG. [What Are ETNs? – The Truth About Credit Risk]

“The ETNs provide institutional traders with an efficient and effective means of managing their commodity exposures and expressing market views,” according to a VelocityShares note.

Managers trade commodities for portfolio diversification, inflation/deflation hedging, hedging company earnings, economic forecast hedging and price speculation, VelocityShares added.

The products are designed for traders rather than buy-and-hold investors.

For more information on exchange traded notes, visit our ETNs category.

Max Chen contributed to this article.

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