Natural Gas: How To Play The Summer Comeback
It’s been an interesting time for investors in the natural gas space. As hydraulic fracturing and horizontal drilling have become the extraction method of choice for E&P firms, production of the fuel has skyrocketed and led to a surplus of supply and high storage inventories. The huge surpluses have combined with slack demand for the fuel, causing prices to crater. At one point they were below $2 per MMBtu [for more oil news and analysis subscribe to our free newsletter].
Five ETFs to Ride the Natural Gas Rally
Few commodities have been in the news as much as natural gas has in 2012. After an abysmal multi-year run, NG seemed to have no momentum behind it and most investors had given up hope. But earlier in this year saw some much needed relief for the fossil fuel as temperatures across the nation were hotter than normal, spiking demand for NG. Ever since, natural gas and its related investment securities have been on a tear, with the commodity itself tacking on 70% in the last three months alone [for more natural gas news subscribe to our free newsletter].
Natural Gas, UNG On a 70% Rally
Natural gas has been one of the most talked about commodities this year, as its prices tumbled at the start of 2012. Up until a few months ago, NG had been one of the worst performing commodities over the past few years, as the recession started the fossil fuel on a slippery slope that it would never fully recover from [see also 25 Ways To Invest In Natural Gas].
ProShares Debuts Leveraged Natural Gas ETFs
This article originally appeared on ETFdb.com ProShares, the largest issuer of geared ETFs that has made a push into the alternatives space, adding two more products to its lineup late last week. The new Ultra DJ-UBS Natural Gas (BOIL) and UltraShort DJ-UBS Natural Gas (KOLD) are both linked to the Dow Jones-UBS Natural Gas Subindex, a benchmark that consists of natural gas futures contracts. BOIL will seek to deliver daily results that correspond to 200% of the change in the underlying index, while KOLD will target -200% of the daily returns of the benchmark. With the launch of the two new products ProShares now offers ten leveraged commodity funds, including ETFs linked to gold (UGL, GLL), silver (AGQ, ZSL), crude oil (UCO, SCO), and a broad basket of natural resource futures (UCD, CMD). “There has been strong demand for geared commodity ETFs, as investors have come to recognize the importance … See the full story here
