The UNG Gas Fund ETF (UNG) is an ETF which comprises short-term futures contracts and natural gas swaps. The United States Natural Gas ETF dominates the segment in terms of size and liquidity and offers a clear exposure to natural gas futures. The fund, which was launched in April 2007, contains many more assets than many other competitors combined. The fund is also massively liquid with a high daily trading volume and low spreads.
For its futures exposures, the UNG ETF uses a plain-vanilla roll strategy, with contracts expiring in the following month. This makes it particularly sensitive to the shape of futures curves. To trade using UNG Gas Fund ETFs, you can use the Plus500 platform.
The United States Natural Gas Fund is an LP and is a commodity pool that issues shares traded on the NYSE Ark. The company’s investment objective is based on changes in the Net Asset Value of its units, which reflect changes in percentage terms of the spot price of natural gas delivered to the Henry Hub, Louisiana, as measured by changes in the daily price of natural gas futures contracts traded on the NYMEX (New York Mercantile Exchange) and expires in the following month with the exception of contracts expiring less than two weeks after the end of the month. In this case, this will be measured by the futures contract expiring in the following month (BFC or Benchmark Futures Contract), net of charges. The general partner of the company is the USCF (United States Comodity Funds LLC), which is responsible for the management of the company.