Even without those fundamental concerns, UGA has a disappointing track record in June through August time frame. Excluding 2008, UGA’s first year in existence, because nearly all asset classes were decimated due to the global financial crisis, UGA’s summer travel season performances have been mediocre.
The ETF traded lower during that time period in 2009, was flat in 2010 and posted a slight gain in 2011 before turning in a stellar June-August run last year. However, UGA still has its problems. The average national gas price is about 35 cents per gallon higher today than it was to start the year and has risen 4.4% since late April, according to Bespoke Investment Group. Still, UGA is down year-to-date and its one-month rise is not even half of that of gasoline prices.
United States Gasoline Fund
ETF Trends editorial team contributed to this report.