. The United States Natural Gas Fund (NYSE:UNG), which seeks to track the performance of the price of natural gas, has surged 20.5% over the past four weeks. This fund had been under a great deal of stress in recent months due to a supply surplus that has not been experienced in years,” Billy Fisher Reports From Investopedia.
“Will this ascent continue for (UNG)? There is some positive news that this ETF may still have room to run in the near-term. One forecast has called for the northeast to have its coldest winter in a decade. The mere possibility of a scenario in which the demand for heating fuel could see a strong spike has already generated a great deal of additional speculation in the space. Absent any other improvements in fundamentals, it is doubtful that cold weather alone will make this rally sustainable in the long run,” Fisher Reports.
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The investment (UNG) seeks to replicate the performance, net of expenses, of natural gas. The trust will invest in futures contracts on natural gas traded on the NYMEX that is the near month contract to expire. It is nondiversified.