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Natural Gas ETF (UNG) Hits New 52-Week High

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For investors seeking momentum, United States Natural Gas Fund (UNG - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 174% from its 52-week low price of $11.69/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

UNG in Focus

United States Natural Gas Fund provides direct exposure to the price of natural gas on a daily basis through futures contracts. If the near-month contract is within two weeks of expiration, the benchmark will be the next month’s contract to expire. The natural gas contract is natural gas delivered at the Henry Hub, LA. The product charges 1.11% in annual fees (see: all the Energy ETFs here).

Why the Move?

The natural gas ETF world has been an area to watch lately, given soaring natural gas prices. Natural gas prices have rallied above $10 per million British thermal units for the first time since 2008 buoyed by persistent supply scarcity and rising demand for heading. The United States, which has become the world's largest liquid natural gas exporter, currently has 10% less natural gas inventory than it typically has ahead of winter.

More Gains Ahead?     

It seems that UNG might remain strong given a higher weighted alpha of 128.20 and a lower 20-day volatility of 64.4%. As a result, there is still some promise for investors who want to ride on this surging ETF a little further.


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