“Natural gas futures Thursday began trading higher after the government reported a lighter-than-expected build in last week’s inventory levels. According to Energy Information Administration statistics released Thursday morning, natural gas storage levels measured in the lower 48 states increased by 94 billion cubic feet. But for the week ended May 7, a group of analysts surveyed by Platts had expected the government to report a larger net net injection between 100 to 104 billion cubic feet,” Sung Moss Reports From The Street.

Moss goes on to say, “Storage levels, according to the report, rested at 2.089 trillion cubic feet by week’s end, meaning inventory still remain swelled. The mark stands 4.9% higher than the level from a year ago and 18.4% higher than the five-year average. After losing ground just before the release, natural gas futures hit a two-month high soon after. The June delivery contract was recently surging 11 cents to trade at nearly $4.40 per million British thermal units.”

As for what to make of the data, Mike Fitzpatrick, vice president at MF Global, said “the fundamentals are so poor, there’s just not much room for interpretation,” adding that the price will probably be stuck in a range between around $3.80 and $4.40 until a real catalyst strikes the market.
 
The U.S. Natural Gas ETF (NYSE:UNG) was higher from the supply data improving to 2.53% in today’s session.  Investors have continued to take a beating on the US Natural Gas ETF (NYSE: UNG) over the past year and any relief to the ETF is welcomed.

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.

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UNG