re: BOIL has become predictable

quote:

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So when I am buying DGAZ, I am losing time value if I hold? Similar to options?

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They own futures contracts. The ETN, which is a note secured by someone, owns next months, and further out contracts. They likely own swaps also. If they don't, they are stupid, and make no mistake, some fund managers aren't that smart.

As the contract nears expiration, the price of the contract almost always reached spot price of the commodity. Again, you are buying a share today, based on a price in to the future. If you are thinking short April, you might actually be buying October's prices.