The Top (and only) Natural Gas ETF

For buyers optimistic that pure gasoline costs could rebound this winter after a 40% decline, one ETF supplies publicity to the commodity with out tying their funding to a single safety.

Key Takeaways

  • Whereas pure gasoline futures within the U.S. have plunged from a 14-year excessive in August, they’ve outperformed the S&P 500 Index through the previous yr.
  • The very best an solely pure gasoline ETF is the USA Pure Gasoline Fund.
  • This fund holds pure gasoline futures contracts to realize publicity to pure gasoline costs.

The USA Pure Gasoline Fund is the one pure gasoline ETF that trades within the U.S., excluding inverse and leveraged funds in addition to these with below $50 million in belongings below administration. Whereas the ETF has underperformed the 16% acquire of the benchmark Bloomberg Pure Gasoline Subindex up to now yr, it beat the 19% decline within the S&P 500 Index as of Nov. 9.

After rising to a 14-year excessive in August after the Russian invasion of Ukraine, pure gasoline costs within the U.S. suffered their longest string of weekly losses in additional than twenty years due to document manufacturing and milder-than-expected climate. Nonetheless, costs are poised to rise amid tight international gasoline provides if climate is colder than forecast this winter.

Under we glance extra intently at the USA Pure Gasoline Fund. The entire knowledge under are as of Nov. 11.

  • Efficiency Over One Yr: 11.9%
  • Expense Ratio: 1.11%
  • Annual Dividend Yield: N/A
  • Three-Month Common Every day Quantity: 6,151,771
  • Property Beneath Administration: $527.7 million
  • Inception Date: April 18, 2007
  • Issuer: Marygold Cos, Inc.
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UNG is structured as a commodity pool, a personal funding construction that mixes investor contributions to commerce commodity futures contracts. The fund supplies publicity to pure gasoline costs by shopping for pure gasoline futures contracts. UNG goals to duplicate the p.c change each day of the value of pure gasoline delivered on the Henry Hub, Louisiana. It invests in entrance month futures contracts, which means the futures contracts with the closest expiration dates. This implies the fund is extra uncovered to the adversarial impacts of contango and is thus extra acceptable for merchants with a short-term technique. The ETF additionally could also be interesting as an inflation hedge.

The feedback, opinions, and analyses expressed herein are for informational functions solely and shouldn’t be thought of particular person funding recommendation or suggestions to spend money on any safety or undertake any funding technique. Whereas we imagine the data supplied herein is dependable, we don’t warrant its accuracy or completeness. The views and methods described in our content material might not be appropriate for all buyers. As a result of market and financial situations are topic to fast change, all feedback, opinions, and analyses contained inside our content material are rendered as of the date of the posting and should change with out discover. The fabric just isn’t supposed as an entire evaluation of each materials truth relating to any nation, area, market, trade, funding, or technique.