Furthermore, the U.S. could begin exporting excess natural gas to foreign markets, notably in Mexico where the country is constructing gas generators to meet rising electricity needs and faces limited additions to its gas production.
Equity-based natural gas ETFs have been punished as well. The First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG), which is comprised of natural gas exploration and production companies, is off more than 4% year-to-date, a loss that is nearly times worse than that of the Energy Select Sector SPDR (NYSEArca: XLE).
The $240 million FCG has been vexed investors, lagging natural gas futures when the commodity rises and performing noticeably worse when the commodity declines. For example, FCG’s 2014 loss of 42% was nearly 50% worse than UNG’s 2014 tumble. Some investors have gone bottom-fishing with FCG this year as the ETF has added nearly $5.4 million in new assets. [Bearish Outlook for Natural Gas ETFs]
VelocityShares Daily 3x Long Natural Gas ETN