UGL

UGL promises twice the daily returns of gold — it's a bullish bet on the price of gold. The fund's leveraged exposure is benchmarked to the price performance of the Bloomberg Gold Subindex — an index tracking a rolling futures position on gold based on Bloomberg's fixed contract schedule. It's designed for short-term tactical use, so it's not for buy-and-hold investors. If held for longer than one day, the effects of daily compounding can cause UGL to drift away from the promised 2x exposure. As an ETF, UGL is structured as a commodities pool, so expect a K-1 at tax time.