6 Nov

How Natural Gas ETFs Fared Last Week

WRITTEN BY Rabindra Samanta

Natural gas ETFs

Between October 27 and November 3, 2017, the United States Natural Gas Fund LP (UNG) rose just 0.2%, and natural gas December futures rose 0.7%. UNG aims to track natural gas near-month futures.

How Natural Gas ETFs Fared Last Week

But the ProShares Ultra Bloomberg Natural Gas’s (BOIL) returns were in the red last week. BOIL fell 1.2% over this period, underperforming UNG.

BOIL’s objective is to deliver two times the daily price fluctuation of the Bloomberg Natural Gas Subindex. The fall in natural gas prices early last week could have kept BOIL’s returns in negative territory.

March 2016

On March 3, 2016, natural gas (FCG) (GASL) (GASX) active futures plunged to their lowest closing prices in 17 years. Between March 3, 2016, and November 3, 2017, natural gas futures rose 82.1%. However, UNG rose 5.7%, while BOIL fell 14.4% during this period.

These natural gas ETFs likely underperformed natural gas futures because of a negative roll yield, as we discussed in the preceding part of this series.

On November 3, 2017, natural gas futures contracts to February 2018 settled at progressively higher prices. For more analysis on natural gas’s futures spread, check out Understanding the Natural Gas Futures Spread: Are Oversupply Concerns Rising?

In the case of BOIL, the compounding of its daily price changes over a long span may also be behind the deviation between its actual return and its expected return.

Latest articles

15 Jul

Will Amazon Prime Day 2019 Break 2018's Record?

WRITTEN BY Jitendra Parashar

This year, Amazon extended its Prime Day to 48 hours instead of the 36-hour sale in July 2018, making the 2019 event the longest Prime Day ever.

In a series of tweets on Monday, Trump today weighed in on China’s GDP growth, which came in at a 27-year low.

15 Jul

OrganiGram's Third-Quarter Earnings


On Monday morning, OrganiGram's third-quarter earnings came in as a bit of a let-down. Here's why.

Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.

Huawei is preparing for “extensive layoffs” in the US, which could put the US-China trade deal on the rocks.

With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.