Meanwhile, UNG has been looking at new ways to invest in natural gas without breaking any rules about position limits, says Christine Buurma for The Wall Street Journal. Last month, the fund bought a $250 million over-the-counter swap, which is a bet between the fund and another party on the direction of the price of natural gas. Buurma notes that if the fund can invest in more swaps, it might be able to issue new units.
The hearings didn’t seem to dent the popularity of the fund. UNG’s assets surged to more than $4 billion and the fund saw inflows of more than $1 billion in July.
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For full disclosure, some of Tom Lydon’s accounts hold UNG.
