Natural gas ETFs

Between December 28 and January 4, the United States Natural Gas ETF (UNG) fell 8.4%, while the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) fell 17.4%. These ETFs track natural gas futures. UNG holds active natural gas futures contracts, while BOIL tracks daily changes in the Bloomberg Natural Gas Subindex.

Analyzing Natural Gas ETFs’ Performance Last Week

UNG has underperformed natural gas February futures, which have fallen 7.8% in the past four trading sessions. Lower natural gas prices could be negative for natural gas–weighted stocks. Cabot Oil & Gas (COG), Chesapeake Energy (CHK), Gulfport Energy (GPOR), and Southwestern Energy (SWN), the weakest natural gas–weighted stocks, rose 0.8%, 4.7%, 7.3%, and 10.5%, respectively, last week. All natural gas–weighted stocks rose.

Long-term returns and forward curve

Between March 3, 2016, and January 4, 2018, natural gas active futures rose 85.7% from their 17-year low, while UNG and BOIL returned 8.3% and -41.4%, respectively. Since March 3, 2016, UNG and BOIL have delivered lower returns than natural gas active futures, possibly due to a negative roll yield. BOIL’s actual and expected returns could also be different due to daily price changes. As of January 4, natural gas futures for delivery between February and May 2019 closed in descending order, which could be a positive sign for these ETFs’ returns.

Latest articles

The Dow Jones Industrial Index or DJIA has risen 15.5% year-to-date. The index is trading at 26,935.07, which is 1.9% below its 52-week high.

In the week that ended on September 20, US crude oil prices rose 5.9%. On September 14, drones attack crippled Saudi Arabia oil production by 50%.

Last week, the overall cannabis sector remained subdued. Sector ETFs, such as the Horizons Marijuana Life Sciences ETF (HMMJ), closed about 8.15% lower.

The online streaming landscape was once owned by a few companies, largely Netflix and Hulu, but each of which offered a different type of content.

The Dow Jones Industrial Average or DJIA fell 0.6% or 159.72 points on Friday, September 20, 2019. The S&P 500 ETF fell 0.54% yesterday.

Netflix (NFLX) used to dominate the SVOD streaming services market. It was a leader with few competitors and a subscriber base of over 150 million.