The U.S. Natural Gas Fund (NYSEArca: UNG) was up 0.4% Thursday. UNG has gained 8.8% so far this year.
Investors interested in taking a more aggressive approach to natural gas can look at the ProShares Ultra DJ-UBS Natural Gas ETF (NYSEArca: BOIL), which attempts to deliver twice the daily performance of natural gas, and VelocityShares 3x Long Natural Gas ETN (NYSEArca: UGAZ), which tries to provide three times the daily performance of natural gas futures. BOIL has gained 15.6% year-to-date while UGAZ increased 22.9%.
Due to the daily rebalancing and compounding effects over time, the leveraged funds may not perfectly reflect their 2x or 3x strategies over a long period. Investors have typically used geared funds as a short-term hedge or as speculative plays.
U.S. Natural Gas Fund
For more information on natural gas, visit our natural gas category.