|Bid||54.54 x 1400|
|Ask||55.00 x 1400|
|Day's Range||53.62 - 55.08|
|52 Week Range||29.08 - 82.45|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-3.93|
|Expense Ratio (net)||1.09%|
Wall Street has been witnessing a tough ride this month due to U.S.-China trade conflicts, weak global economic data, low inflation and political unrest in Hong Kong.
Amid bearish fundamentals, many investors have turned bearish on the energy sector and are seeking to tap this opportunity. For them, an inverse or leveraged inverse play on energy or oil could be an excellent idea.
While oil prices are surging, the energy sector is being left behind...sort of. The Energy Select Sector Index (IXETR), a widely followed gauge of large-cap U.S. energy stocks, is up 16.80 percent year-to-date. It also means that the large-cap energy index trailing the United States Oil Fund (NYSE: USO), which tracks front-month West Texas Intermediate futures, by a 2-to-1 margin.
Fluctuating oil prices and talks of a trade war, among other things, caused energy sectors stocks to tumble throughout 2018. Although there were reasons to be optimistic at various points throughout the year, the last few months of 2018 were particularly rough: October constituted the worst single month for the sector in the better part of a decade, and the final weeks of the year saw stock prices plummet along with the market overall.
The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the index equal to at least 80% of the fund's net assets (plus borrowing for investment purposes). GASX seeks daily investment results worth 300% of the inverse of the daily performance of the ISE-Revere Natural Gas IndexTM. The fund, under normal circumstances, invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the index equal to at least 80% of the fund's net assets (plus borrowing for investment purposes).
Note in the chart below how energy was beating the market by 20%, but now is trailing by 10%—quite the 30% reversal.ERX (3X Bull Energy) and ERY (3X Bear Energy) can help you hedge or make the bounce-back bet, whichever you opt for. US-China trade war concerns affected crude oil prices as the dispute between the two nations is expected to affect global economic growth. Adding fuel to the fire are the US sanctions against Iran’s oil sector, which affected crude oil prices further.