“The beginning of the end of the slide in natural gas prices is upon us and investors should position themselves in ETFs such as First Trust ISE-Revere Natural Gas (NYSE: FCG) ahead of the turn. Natural gas suffered a double whammy in the past two years. First, the global economic crisis crushed demand from all sources: residential, commercial, industrial and electric power. Then, with consumption low, output increased as new discoveries and production were brought to market. The result was a price that slid and stagnated even as the U.S. and global economy recovered, pushing the price of oil up about 100% from crisis lows,” Don Dion Reports From The Street.

Dion Goes on to say, “All these factors point to a bottom in natural gas prices, but it doesn’t mean the bottom is in. Bottoming is a process and the forces that will cause the next sustained rally in natural gas prices take time to build up. This gives investors the luxury of time in positioning themselves for the eventual upturn. For ETF investors looking to play a bottom in natural gas, U.S. Natural Gas (NYSE: UNG) is not the best choice. Fundamentally, natural gas prices may have further to fall in the near term and in the long run, I expect natural gas stocks will beat the fuel itself. The better ETF for this move is First Trust ISE-Revere Natural Gas (NYSE: FCG), with the J.P. Morgan Alerian MLP Index ETN (AMJ) as a solid choice for conservative and income oriented investors.”

“Investors also have a much more volatile play in the form of the Jeffries TR/J CRB Wildcatters Exploration & Production Equity ETF (NYSE: WCAT), which owns small and mid-cap oil and natural gas explorers and producers. The fund has a 0.65% expense ratio and extremely low volume that has averaged 1,500 shares per day over the past three months, in addition to having only $4 million in assets. I warned investors of the risks in this fund before in an article, but I expect this fund to outperform. Recently, top 10 holding Mariner Energy(ME) jumped almost 50% when Apache(APA) offered to buy the firm, and this has helped WCAT beat FCG thus far in 2010, 16.5% to 10.7%,” Dion Reports.

See More Details To Don Dion’s Article: HERE

Here is a link to our United States Natural Gas ETF (NYSE:UNG) section where you will find a wealth of information on UNG.

ETFs offer an easy way to play Natural Gas and there are many options available besides the most popular US Natural Gas ETF (NYSE: UNG).  We have listed some options for investors to look at and compare to one another below.  Note that we have listed some industry related ETFs as well as direct Natural Gas exposure plays excluding any leveraged ETFs.    

United States Natural Gas Fund (NYSE: UNG)    

The United States Natural Gas Fund, LP (“UNG”) is a new way for investors and hedgers to manage their exposure to energy. The United States Natural Gas Fund LP (NYSE: UNG) is an exchange traded security that is designed to track in percentage terms the movements of natural gas prices. UNG issues units that may be purchased and sold on the NYSE Arca. The investment objective of UNG is for the changes in percentage terms of the units’ net asset value to reflect the changes in percentage terms of the price of natural gas delivered at the Henry Hub, Louisiana, as measured by the changes in the price of the futures contract on natural gas traded on the New York Mercantile Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire, less UNG’s expenses.    

United States 12 Month Natural Gas (NYSE: UNL)    

The investment seeks to reflect the changes, net of expenses, of the spot price of natural gas delivered at the Henry Hub, Louisiana, as measured by the changes in the average of the prices of 12 futures contracts on natural gas traded on the NYMEX. The fund will consist of the near month contact to expire and the contracts for the following eleven months, for a total of 12 consecutive months contracts, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire and the contracts for the following eleven consecutive months.    

iPath DJ-UBS Natural Gas TR Sub-Idx ETN (NYSE: GAZ)    

The investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones-UBS Natural Gas Total Return Sub-Index. The note is designed to reflect the performance of natural gas. The index is composed of the Henry Hub Natural Gas futures contract traded on the New York Mercantile Exchange.    

First Trust ISE-Revere Natural Gas Idx (NYSE: FCG)    

The investment seeks to replicate, net of expenses, the ISE-REVERE Natural Gas index. The fund invests at least 90% of assets in common stocks that comprise the index. The index is an equal-weighted index that consists of exchange-listed companies that derive a substantial portion of their revenue from the exploration and production of natural gas. The fund is nondiversified.    

iShares Dow Jones US Oil Equipment Index (NYSE: IEZ)    

The investment seeks results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Oil Equipment & Services index. The fund generally invests at least 90% of assets in securities of the Underlying index and depositary receipts representing securities of the Underlying index. It may invest the remainder of assets in securities not included in the Underlying index but which BGFA believes will help the fund track Underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA. It is nondiversified.    

Jefferies | TR/J CRB Wildcatters Exploration & Production Equity ETF (NYSE: WCAT)    

The investment seeks investment results that replicate as closely as possible, before fees and expenses, the price and yield performance of the Thomson Reuters/Jefferies CRB Wildcatters Energy E&P Equity index. The fund normally invests at least 80% of total assets in the equity securities that comprise the underlying index and depositary receipts based on the securities in index. The index is designed to track the overall performance of a universe of listed U.S. and Canadian small and mid-capitalization companies engaged in the exploration and production of oil and natural gas. The fund is nondiversified.

NYSE:FCG, UNG, WCAT