Is There a Good Way to Invest in Natural Gas With ETFs? (UNG, UNL)
Is there a good way to invest in natural gas through an ETF? Morningstar’s Abe Bailin says, “there are good reasons to invest in UNG. Investors write in with questions all the time: “Why would I want to own (NYSEArca:UNG), and why wouldn’t I want an alternative product or just buy the nat gas companies?”
The answer to that question is that the closer you are toward expiration, the closer you are to the front-end of the futures curve, the more sensitive you’re going to be to the movement in that commodity. So if you’re speculating over say a week or maybe even a month, and you have a positive thesis for natural gas, well, UNG could do very well for you.”
See the full Morningstar interview below:
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Related ETFs: (NYSEArca:UNG), (NYSEArca:UNL), (NYSEArca:GLD), (NYSEArca:IAU)
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