Nevertheless, Commodity Weather Group LLC warns that colder-than-average temperatures is still expected “over the next few weeks.”
The ProShares UltraShort DJ-UBS Natural Gas ETF (NYSEArca: KOLD) also provides an inverse play on natural gas. The geared ETF tries to reflect the -2x, or -200%, daily performance of natural gas prices. KOLD was up 4.8% Monday.
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 hedges or as speculative plays.
U.S. Natural Gas Fund
For more information on natural gas, visit our natural gas category.
Max Chen contributed to this article.