What's wrong with DUG?

For those who are to lazy.
Here is the link with the holdings.

http://www.proshares.com/funds/dug.html?Daily Holdings

 

DUG gets the leverage on the short side using futures and other investment instruments but still does the opposite of what DIG does which does hold stocks in its ETF.

DIG is the opposite of DUG and DIG holds the following stocks:

TOP 10 HOLDINGS ( 63.88% OF TOTAL ASSETS)
Company Symbol % Assets
APACHE CP APA 2.3
CHEVRON CORP CVX 10.42
CONOCOPHILLIPS COP 6.5
DEVON ENERGY CP (OK) DVN 2.48
Djusen Swaps N/A 2.77
EXXON MOBIL CP XOM 25.04
HALLIBURTON CO HAL 2.11
OCCIDENTAL PET OXY 3.58
SCHLUMBERGER LTD SLB 6.26
TRANSOCEAN INC RIG 2.42

 

DUG is NOT the Dow jones Oil and Index!!! LOOK IT UP. READ IT. It holds SWAPS as i said.

Not sure why this is so hard to understand, but your reply is the reason why pro guys like myself do often not bother to reply.

 

NO. You really do not get it.
DUG does not hold stocks. DUG is not the reverse of DIG. DUG does not hold stocks.

I give up.

 

If you look at the daily holdings for the last 5- 6 months or so then you see that it holds swaps and cash. Even they say it have the ability to hold stocks, options and futures, they have (as far as i have been tracking it) been holding the swaps.

The fairly new ETF DOY holds cash and T-bills. And is the (ideally) the exact opposite as the UOY. When oil goes up they move funds from DOY to UOY and then the NAV is computed and thus shows an decrease in price of the DOY. Ideally directly corresponding to the price of oil.

This is new, but seems like a better play.

 

My bad.
You are correct.
I was thinking "DIG" instead of "DUG" which as you correctly point out, uses DJUSEN swaps.

 

You have a reading comprehension problem. I never said that DUG holds stocks or that DUG is the Dow Jones Oil & Gas Index, just that the performance of DUG is tied to the performance of the Dow Jones Oil & Gas Index rather than to the price of oil. In particular DUG is supposed to match double the inverse performance of the Dow Jones Oil & Gas Index. The fact that DJUSEN swaps are used does not alter the fact that DUG depends on the prices of energy stocks and not the price of oil. DJUSEN is the symbol for the Dow Jones Oil & Gas Index.

On the day in question DUG went up 5.40% because oil and gas stocks went down significantly even though the price of oil shot up. On the same day XOI (Amex Oil Index) was down 3.24% for the same reason.

 

Its the other way round today.

Oil down and DUG is also down by more than 1%.

What gives?

 

Nat-Gas was up for most of the session ( came back to a 50% retracement before running into resistance ) and traded as high as 8.955 for the Sept. contract. As a result, a lot of the drillers and nat-gas names followed.

 

I gave a full explanation back on 07/04/08. "In particular DUG is supposed to match double the inverse performance of the Dow Jones Oil & Gas Index."

The DJUSEN stock index is currently UP 0.42%, hence DUG DOWN about 1%.