United States Commodity Funds recently won regulatory approval for its newest addition: a 12-month natural gas exchange traded fund (ETF). The fund is expected to begin trading tomorrow.
The U.S. 12 Month Natural Gas Fund (NYSEArca: UNL) has gotten the green light from regulators to issue about 30 million shares, which will purchase natural gas futures for delivery over the next 12 months. Asjylyn Loder for Bloomberg reports that it will sell the near-month contract as it approaches expiration and replace it with a contract for delivery in 12 months.
The ETF comes from U.S. Commodity Funds LLC, which also manages the popular $3.5-billion U.S. Natural Gas Fund (NYSEArca: UNG) and the $1.96-billion U.S. Oil Fund (NYSEArca: USO). (Natural gas ETF shifts strategy).
UNG differs from UNL in that UNG buys the near-month contract, then sells it each month as it nears expiration and buys the next month.