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Upturn AI SWOT - About
United States Natural Gas Fund LP (UNG)
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Upturn Advisory Summary
08/01/2025: UNG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type ETF | Historic Profit -38.24% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/01/2025 |
Key Highlights
Volume (30-day avg) - | Beta 3.22 | 52 Weeks Range 12.35 - 24.33 | Updated Date 06/29/2025 |
52 Weeks Range 12.35 - 24.33 | Updated Date 06/29/2025 |
Upturn AI SWOT
United States Natural Gas Fund LP
ETF Overview
Overview
The United States Natural Gas Fund LP (UNG) aims to track the daily changes in percentage terms of the spot price of natural gas delivered at Henry Hub, Louisiana, as measured by the changes in the NYMEX Henry Hub natural gas futures contract. It primarily focuses on the natural gas commodity sector. The investment strategy involves purchasing natural gas futures contracts.
Reputation and Reliability
United States Commodity Funds LLC (USCF) is a specialized commodity ETF provider. While they offer commodity exposure, their natural gas funds have faced criticism regarding long-term performance due to contango.
Management Expertise
USCF has a team dedicated to commodity ETFs. However, managing futures-based commodity ETFs is inherently complex, and the impact of contango on returns requires careful monitoring.
Investment Objective
Goal
To reflect the daily percentage changes of the spot price of natural gas.
Investment Approach and Strategy
Strategy: The ETF aims to track the daily price movements of natural gas futures contracts.
Composition Primarily natural gas futures contracts traded on the NYMEX.
Market Position
Market Share: UNG's market share fluctuates, and it is a significant, but not dominant, player in the natural gas ETP space.
Total Net Assets (AUM): 552956617.82
Competitors
Key Competitors
- ProShares Ultra Bloomberg Natural Gas (BOIL)
- MicroSectors U.S. Big Oil Index 3X Leveraged ETN (NRGU)
- Direxion Daily Natural Gas Related Bull 3X Shares (GASL)
Competitive Landscape
The natural gas ETF market is competitive, with multiple leveraged and unleveraged options. UNG faces competition from other funds offering similar exposure. UNG's size gives it an advantage in liquidity, but contango can significantly erode returns compared to physically-backed commodity ETFs (which aren't available for natural gas). Leveraged funds offer higher potential returns, but also significantly higher risk and are not suitable for long-term holding.
Financial Performance
Historical Performance: UNG's historical performance is highly volatile and sensitive to natural gas price fluctuations. Long-term returns are often negative due to contango.
Benchmark Comparison: UNG aims to track the daily price changes of natural gas futures. However, due to contango, its long-term performance often deviates significantly from the spot price of natural gas.
Expense Ratio: 1.35
Liquidity
Average Trading Volume
UNG exhibits relatively high liquidity, facilitating easy entry and exit for investors.
Bid-Ask Spread
The bid-ask spread for UNG is generally tight, indicating relatively low trading costs.
Market Dynamics
Market Environment Factors
Natural gas prices are affected by weather patterns, storage levels, production, economic growth, and geopolitical events. These factors greatly impact UNG's price.
Growth Trajectory
UNG's growth trajectory is tied to natural gas demand and supply dynamics. There have been no recent significant changes to its strategy or holdings.
Moat and Competitive Advantages
Competitive Edge
UNG provides direct exposure to natural gas futures, allowing investors to speculate or hedge against natural gas price movements. Its main advantage is high liquidity, enabling easy trading. However, contango in the natural gas futures market is a significant drawback. It's more suitable for short-term trading than long-term investing. UNG's transparent structure makes it a popular choice for short-term traders and speculators.
Risk Analysis
Volatility
UNG is highly volatile, reflecting the inherent price fluctuations in the natural gas market.
Market Risk
UNG is exposed to market risk related to natural gas price fluctuations. Contango and backwardation in the futures market add further risks, potentially leading to significant deviations from the spot price.
Investor Profile
Ideal Investor Profile
UNG is best suited for sophisticated traders and speculators seeking short-term exposure to natural gas prices. It is not appropriate for long-term investors due to the effects of contango.
Market Risk
UNG is best suited for active traders seeking short-term opportunities. It is not designed for passive index followers or long-term investors.
Summary
The United States Natural Gas Fund LP (UNG) aims to track the daily percentage changes in natural gas prices through futures contracts. However, contango significantly impacts its long-term returns, making it more suitable for short-term trading than long-term investment. The fund's high liquidity and expense ratio are important considerations. It is primarily suited to experienced traders who understand the risks associated with natural gas futures. Overall, UNG offers a direct way to participate in natural gas price movements for those with a high-risk tolerance and short-term focus.
Peer Comparison
Sources and Disclaimers
Data Sources:
- USCF Website
- ETF.com
- Yahoo Finance
- SEC Filings
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Investing in commodity-based ETFs involves significant risks, including market volatility and contango.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About United States Natural Gas Fund LP
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund invests primarily in futures contracts for natural gas that are traded on the NYMEX, ICE Futures Europe and ICE Futures U.S. (together, "ICE Futures") or other U.S. and foreign exchanges. The Benchmark Futures Contract is the futures contract on natural gas as 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.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.