Why is DUG down when oil prices are down?

Question

DUG is an exchange traded fund that is supposed to short oil. However, today with oil down again, it is also down. It's down as much as oil is on a percentage bases. Does anybody know why that occurs?

Answer 1

i think they want you to buy it with it because they want yo to tell your friends so they in the long run get more money

Answer 2

DUG does not short the commodity, it has as it holdings major oil companies which are making money and have had a good play in the market, even with Oil going down.

Oil will probably continue to drop, but the oil companies are still selling their products, even though their mark up is low. the demand for oil and oil products are great.

DUG as been on a down trend since the begining of the year, and it doesn't appear to be ending.  The oil companies have had good runs.  

As a holder of DUG you need the oil companies to be selling off, this may be happening slowly and may be accerated if the Liberals get their way, either by taxes or some other non logical means

Answer 3

Treasuries are down...I'm sure they invest quite a bit there?

Answer 4

They don't short oil.  ProShares tracks the Dow Jones U.S. Oil & Gas Index, which measures the performance of the energy sector of the U.S. equity market. Unlike many index trackers, the fund seeks daily investment results that correspond to double the inverse (opposite) of the index's daily performance. So if the index falls 1%, the fund should go up by 2%.

Although the index includes more than 80 energy-related companies involved in oil drilling equipment and services, coal, and oil companies, it is dominated by major oil companies. ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and ConocoPhillips (NYSE: COP) together make up close to half of the index.

I haven't checked all 80 energy stocks, but maybe most of them are up today, a few I checked are.