The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, has already declined 34.3% year-to-date. Meanwhile, the U.S. Heating Oil Fund (NYSEArca: UHN) decreased 15.9% and the United States Natural Gas Fund (NYSEArca: UNG) dropped 10.9% so far this year.
Energy traders can also hedge against falling natural prices in the face of lower demand with inverse ETFs. For instance, the VelocityShares Daily 3x Inverse Natural Gas ETN (NYSEArca: DGAZ) seeks to provide the daily inverse 3x, or -300%, performance of the NYMEX natural gas futures. The ProShares UltraShort Bloomberg Natural Gas (NYSEArca: KOLD) provides the daily inverse 2x, or -200%, performance. [High Stockpiles Sap Energy from Natural Gas ETF]
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Max Chen contributed to this article.