Will UNL Work Better Than United States Natural Gas Fund (NYSE: UNG)?
November 19, 2009 at 15:00 PM EST
The official-sounding but totally private United States Commodity Funds has launched another ETF based on natural gas prices. United States 12 Month Natural Gas Fund (UNL) started trading Wednesday (11/18/09). It joins the firm’s previous offering, United States Natural Gas Fund (UNG) in an attempt to offer small investors an easy way to participate in the natural gas market. The new fund is a response to certain structural problems of UNG that resulted in dramatic underperformance relative to its benchmark, particularly in the last few months. This chart of UNG vs. natural gas futures tells the story well. The issue is that futures contracts expire…
