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MARKETS LIVE BLOG:

STOCKS TRADE MIXED AS COMPANY EARNINGS ROLL IN

Shares of Live Nation, parent company of Ticketmaster, fall on antitrust probe report

ProShares Ultra Bloomberg Natural Gas ETF tumbles amid volatility

Yahoo Finance

Yahoo Finance Live anchors Julie Hyman and Jared Blikre discuss the decline for ProShares Ultra Bloomberg Natural Gas ETF and investor optimism for a bounce back in natural gas stocks.

Video Transcript

- When I came in this morning and looked at the trending tickers list as I frequently do, there is a name I didn't recognize. BOIL is the ticker, the ProShares Ultra Bloomberg natural gas ETF. It measures the price performance of natural gas reflected through futures contracts. And it's been a big target for investors or had been a big target for investors seeking a bounce back as natural gas prices have dropped 34% since the start of the year.

Jared, what's so interesting here, so this thing was on fire. And then it has come down a lot and has seen a lot of outflows from this ETF kind of going into last week. And you can see the thing is now down quite a bit year to date.

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- Yeah, natural gas, there's a reason they call this the widowmaker in the futures industry. And this is amid an industry that is already used to high volatility, so not surprised to see that there. I think in terms of the bigger picture, why are we seeing certain ETFs more popular than others? I think there are two trends here. First is low to no fees, that's one trend, and investors have really started taking notice of that. And the other is these leveraged ETF, even single stock ETFs.

So you can bet on the reverse. You can bet on Tesla going up by a multiple of itself or going down. So with that leverage, people are looking for juice. Because we haven't seen, in the overall market, we haven't seen a meme stocks, the tremendous volatility that we saw in 2021, 2022, at least volatility going the right way for buyers of some of these stocks. So I think people looking for leverage are just using this as a replacement for wherever the action is.

- Interesting. Well, I don't know if it's working for them or not. I guess.

- If one is not working for you, there's always an inverse.

- Right, yes that is true. Although like as a former colleague of mine used to say, you have sort of green, yellow, and red maybe when you look at ETFs. And these require a higher degree of sophistication,

- Oh, definitely.

- Trade, these kinds of things.

- So the tax consequences with certain ETNs that you don't have, ETFs read your perspective.

- You got to be careful. You got to be careful.