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Natural Gas ETFs to Gain With Demand Expected to Rebound in 2026
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Key Takeaways
Global natural gas demand grew just 0.5% in 2025, but the World Bank expects 2% growth in 2026.
A rebound is forecasted as Asia Pacific demand recovers and LNG supply expands globally next year.
ETFs like UNG and BOIL offer broad or leveraged exposure to natural gas prices and producers.
The natural gas market presented a mixed picture in 2025, characterized by divergent regional prices and moderated demand. The U.S. benchmark price surged past $5 per MMBtu in early December for the first time in three years, driven by strong LNG exports and cold weather, while European prices trended lower.
Globally, demand growth slowed to a modest 0.5% through the first three quarters of the year (as per World Bank data), dampened by high prices and macroeconomic pressures. However, as we approach 2026, a key shift is on the horizon, with major institutions projecting a demand rebound next year.
Notably, the World Bank report estimates natural gas consumption to rise around 2%, led by a recovery in the Asia Pacific region. This anticipated turnaround, fueled by recovering industrial activity and increased use in the power sector, puts a strategic spotlight on Natural Gas Exchange-Traded Funds (ETFs) as a way for investors to position for this potential growth.
But before suggesting a handful of ETFs that may add to your watchlist, let us analyze the factors that influenced the natural gas market and what could drive its rebound next year, helping you make a more informed decision.
2025 Headwinds vs. 2026 Rebound Expectations
In 2025, natural gas prices were influenced by a complex set of supply-and-demand factors. One of the most prominent features of the year was the divergence between U.S. and European prices. Strong U.S. production growth and robust demand for American LNG exports to Europe supported domestic prices. Conversely, Europe experienced lower prices due to ample LNG availability.
On the other hand, demand in price-sensitive Asian markets was tempered by high spot LNG prices, macroeconomic uncertainty, sluggish LNG imports in China due to increased domestic production and weak industrial demand, as well as competition from Europe. These factors weighed on regional natural gas pricing and slowed demand growth across the region.
Moreover, production in Russia declined, constrained by sanctions and the loss of the European pipeline market. This tightened global supply, putting margin pressure on gas companies.
Heading into 2026, expectations point to a significant increase in supply and a rebound in demand. The International Energy Agency forecasts a record 7% rise in LNG supply, the strongest since 2019, driven by new projects coming online in the United States, Qatar and Canada.
This influx is anticipated to lower spot prices just enough to unlock latent demand in Asia, particularly China and India. For producers and midstream providers, this volume-driven growth is expected to bolster profitability, subsequently driving the valuations of Natural Gas ETFs that track these sector leaders.
Natural Gas ETFs Poised to Gain
Considering the aforementioned projection, for investors looking to capitalize on the gas market’s expected recovery, Natural Gas ETFs offer a strategic advantage. They provide instant diversification across a basket of companies involved in production, exploration, and infrastructure, mitigating the risk associated with investing in any single firm.
Furthermore, they offer a pure-play, liquid exposure to the commodity's price trajectory and the sector's financial health without the complexities of analyzing individual balance sheets. This makes them an efficient tool to gain broad-based exposure to the anticipated 2026 upswing.
Given this, here are three ETFs that should gain in 2026 from the anticipated recovery in natural gas demand and price:
This fund, with net assets worth $578.8 million, tracks the daily price movements of natural gas.
UNG has lost 24.8% year to date but gained 6.4% since Oct. 15, 2025, driven by an upward trend observed in gas prices on account of forecasts of colder winter weather and strong demand for U.S. LNG exports. The fund charges 124 basis points (bps) as fees. It traded at a volume of 12.26 million shares in the last trading session.
This fund, with net assets worth $4.64 million, provides exposure to 34 companies engaged in the exploration, production, and initial processing of Natural Gas and NGLs (“upstream”), as well as transportation, storage, processing, offshore exports, and liquefaction infrastructure that processes LNG for export (midstream). Its top three holdings include Coterra Energy (CTRA - Free Report) (8.10%), Expand Energy (EXE - Free Report) (7.65%) and EQT Corp. (EQT - Free Report) (7.57%).
LNGX has risen 5.7% year to date and improved 5.8% since Oct. 15, 2025. The fund charges 45 bps as fees. It traded at a volume of 0.005 million shares in the last trading session.
This fund, with a net asset value of $25.93, is the only ETF that targets 2x the daily returns of natural gas futures.
BOIL has lost 52.4% year to date but rose 4.8% since Oct. 15, 2025. The fund charges 95 bps as fees. It traded at a volume of 7.86 million shares in the last trading session.
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Natural Gas ETFs to Gain With Demand Expected to Rebound in 2026
Key Takeaways
The natural gas market presented a mixed picture in 2025, characterized by divergent regional prices and moderated demand. The U.S. benchmark price surged past $5 per MMBtu in early December for the first time in three years, driven by strong LNG exports and cold weather, while European prices trended lower.
Globally, demand growth slowed to a modest 0.5% through the first three quarters of the year (as per World Bank data), dampened by high prices and macroeconomic pressures. However, as we approach 2026, a key shift is on the horizon, with major institutions projecting a demand rebound next year.
Notably, the World Bank report estimates natural gas consumption to rise around 2%, led by a recovery in the Asia Pacific region. This anticipated turnaround, fueled by recovering industrial activity and increased use in the power sector, puts a strategic spotlight on Natural Gas Exchange-Traded Funds (ETFs) as a way for investors to position for this potential growth.
But before suggesting a handful of ETFs that may add to your watchlist, let us analyze the factors that influenced the natural gas market and what could drive its rebound next year, helping you make a more informed decision.
2025 Headwinds vs. 2026 Rebound Expectations
In 2025, natural gas prices were influenced by a complex set of supply-and-demand factors. One of the most prominent features of the year was the divergence between U.S. and European prices. Strong U.S. production growth and robust demand for American LNG exports to Europe supported domestic prices. Conversely, Europe experienced lower prices due to ample LNG availability.
On the other hand, demand in price-sensitive Asian markets was tempered by high spot LNG prices, macroeconomic uncertainty, sluggish LNG imports in China due to increased domestic production and weak industrial demand, as well as competition from Europe. These factors weighed on regional natural gas pricing and slowed demand growth across the region.
Moreover, production in Russia declined, constrained by sanctions and the loss of the European pipeline market. This tightened global supply, putting margin pressure on gas companies.
Heading into 2026, expectations point to a significant increase in supply and a rebound in demand. The International Energy Agency forecasts a record 7% rise in LNG supply, the strongest since 2019, driven by new projects coming online in the United States, Qatar and Canada.
This influx is anticipated to lower spot prices just enough to unlock latent demand in Asia, particularly China and India. For producers and midstream providers, this volume-driven growth is expected to bolster profitability, subsequently driving the valuations of Natural Gas ETFs that track these sector leaders.
Natural Gas ETFs Poised to Gain
Considering the aforementioned projection, for investors looking to capitalize on the gas market’s expected recovery, Natural Gas ETFs offer a strategic advantage. They provide instant diversification across a basket of companies involved in production, exploration, and infrastructure, mitigating the risk associated with investing in any single firm.
Furthermore, they offer a pure-play, liquid exposure to the commodity's price trajectory and the sector's financial health without the complexities of analyzing individual balance sheets. This makes them an efficient tool to gain broad-based exposure to the anticipated 2026 upswing.
Given this, here are three ETFs that should gain in 2026 from the anticipated recovery in natural gas demand and price:
United States Natural Gas ETF (UNG - Free Report)
This fund, with net assets worth $578.8 million, tracks the daily price movements of natural gas.
UNG has lost 24.8% year to date but gained 6.4% since Oct. 15, 2025, driven by an upward trend observed in gas prices on account of forecasts of colder winter weather and strong demand for U.S. LNG exports. The fund charges 124 basis points (bps) as fees. It traded at a volume of 12.26 million shares in the last trading session.
Global X U.S. Natural Gas ETF (LNGX - Free Report)
This fund, with net assets worth $4.64 million, provides exposure to 34 companies engaged in the exploration, production, and initial processing of Natural Gas and NGLs (“upstream”), as well as transportation, storage, processing, offshore exports, and liquefaction infrastructure that processes LNG for export (midstream). Its top three holdings include Coterra Energy (CTRA - Free Report) (8.10%), Expand Energy (EXE - Free Report) (7.65%) and EQT Corp. (EQT - Free Report) (7.57%).
LNGX has risen 5.7% year to date and improved 5.8% since Oct. 15, 2025. The fund charges 45 bps as fees. It traded at a volume of 0.005 million shares in the last trading session.
ProShares Ultra Bloomberg Natural Gas (BOIL - Free Report)
This fund, with a net asset value of $25.93, is the only ETF that targets 2x the daily returns of natural gas futures.
BOIL has lost 52.4% year to date but rose 4.8% since Oct. 15, 2025. The fund charges 95 bps as fees. It traded at a volume of 7.86 million shares in the last trading session.