Teucrium Natural Gas (NYSEArca: NAGS), which is also an ETF, debuted this year as well with the goal of reducing effects of contango and backwardation.
Instead of investing solely in front month gas contracts and then employing a methodical roll such as UNG, NAGS invests in a weighted average of March, April, October, and November Henry Hub Natural Gas futures contracts.
Since inception in February of this year, NAGS is down 36.78% versus UNG losing 33.46% during this time period.
Finally, for those looking to employ leveraged directional trading strategies tied to the Natural Gas futures market, ProShares UltraShort DJ-UBS Natural Gas (NYSEArca: KOLD) delivers 2 times the daily inverse return of the DJ-UBS Natural Gas Subindex, and ProShares Ultra DJ-UBS Natural Gas (NYSEArca: BOIL) tracks 2 times the returns on the long side of the same index.
With a variety of ETF/ETN options now available in the natural gas space and given the disappointing performance of UNG and some others this year, we are expecting tax-loss harvesting and potential ETF/ETN tax swap activity to occur going into the final weeks of this year. [ETFs and Tax-Loss Harvesting]
U.S. 12 Month Natural Gas Fund
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