United States Natural Gas Fund
Over the long-term, the United States Natural Gas Fund (NYSE:UNG) has been tagged as one of the worst wealth-destroying ETFs on the market due to the factors of backwardation and contango. However — in the short-term — the ETF is a pretty lucrative vehicle for investors to play the pops and drops in natural gas.
It stands to reason that a rise in prices will cause UNG to rise. For investors, that allows them to gain some allocation to the direct commodity. While I’m not advocating investors give up their day jobs and become traders, some tactical exposure to natural gas pricing could do a portfolio some good.
The fund currently holds nearly $1.1 billion in assets and trades more than 10 million shares each day. That makes it the best choice for more “short-term” portfolio aspirations.
I just wouldn’t hold it for very long.