Natural gas commodity ETFs gain their exposure to natural gas prices through futures contracts. The natural gas futures market has been stuck in a state of contango. [Five Things to Know About Commodity ETFs]

“Effectively, the fund sells its soon-to-expire position and purchases a contract further from expiry to avoid physical delivery,” according to Morningstar analyst Abraham Bailin. “When the prices of those back-month contracts exceed the price of the front-month contract (known as a state of ‘contango’), the fund loses money each time it rolls its position.”

Natural gas ETFs include:

  • First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG)
  • Teucrium Natural Gas Fund (NYSEArca: NAGS)
  • United States Natural Gas Fund (NYSEArca: UNG)
  • United States 12 Month Natural Gas Fund (NYSEArca: UNL)

Natural gas ETNs:

  • iPath Natural Gas Total Return ETN (NYSEArca: GAZ)
  • ETRACS Natural Gas Futures Contango ETN (NYSEArca: GASZ)
  • iPath Seasonal Natural Gas ETN (NYSEArca: DCNG)
  • ETRACS Alerian Natural Gas MLP ETN (NYSEArca: MLPG)

Inverse and leveraged funds:

  • ProShares Ultra DJ-UBS Natural Gas ETF (NYSEArca: BOIL)
  • ProShares UltraShort DJ-UBS Natural Gas ETF (NYSEArca: KOLD
  • Direxion Daily Natural Gas Related Bull 3x Shares ETF (NYSEArca: GASL)
  • Direxion Daily Natural Gas Related Bear 3x ETF (NYSEArca: GASX)

iPath Natural Gas Total Return ETN


For more information on the natural gas market, visit our natural gas category.

Max Chen contributed to this article.