Back to top

ETF News And Commentary

Despite a broad move lower in commodities for much of 2013, investors have seen strong trading in one corner of the natural resource world, natural gas. This potent fuel has managed to break the trend in the commodity world and actually see a strong performance in the year-to-date period.

This is pretty surprising for a couple reasons, the biggest of which is that natural gas has had a horrendous stretch over the past few years, thanks to massive supplies of the product, and the prospect for ever increasing stocks thanks to fracking technologies (read The Comprehensive Guide to Natural Gas ETFs).

However, usage of the fuel has begun to surge this year, as power plants shift to the fuel and demand remains heavy thanks to rough weather across much of the Midwest and Northeast. Plus, some suppliers of the fuel are having trouble making profits at current levels, suggesting that supplies could be curtailed in the months ahead as well.

This situation, along with a favorable futures curve, has pushed many investors to take another look at natural gas ETFs. Unfortunately, there are a handful of products out there that target the space, leaving some paralyzed by choice (read Natural Gas ETFs: Futures vs. Equities).

Below, we highlight some of the biggest differences between these funds, and in our short video, discuss what investors need to know about purchasing an ETF in this intriguing corner of the commodity world:

Name

ETF Ticker

Focus

United States Natural Gas Fund

(UNG - ETF report)

Front month futures focus.

United States 12 Month Natural Gas Fund

(UNL - ETF report)

Futures spread out across a 12 month time frame.

Teucrium Natural Gas ETF

(NAGS - ETF report)

Utilizes 4 different contracts to obtain exposure across the curve.

iPath Dow Jones UBS Natural Gas ETN

(GAZ - ETF report)

ETN format, had had premium/discount issues.

iPath Seasonal Natural Gas ETN

(DCNG - ETF report)

Only uses one futures contract, end of year variety.

First Trust ISE Revere Natural Gas ETF

(FCG - ETF report)

Equity focus, no futures contract worries.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Please login to Zacks.com or register to post a comment.

If you wish to go to ZacksFunds.com, click OK. If you do not, click Cancel.

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
CENTURY ALU… CENX 19.88 +5.74%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
THE PANTRY… PTRY 18.41 +2.79%