Skip to Content
ETF Specialist

Natural Gas ETFs: A Futures Speculation, or an Investment in the Future?

Distinguishing between near-term price performance and long-term opportunity.

Mentioned: , , , , , , ,

Mounting concerns about energy independence, emissions reductions, and affordable power have heightened the demand for energy alternatives. While not all available options are economically viable, recent times have seen natural gas touted as the "fuel of the future" in the United States. The environmentally conscious look to natural gas as a "bridge fuel," predicting that it will replace its carbon-intense cousins, coal and oil, until technological advances allow carbon-neutral energy sources to supersede fossil fuels altogether.

While it has generally taken a back seat to petroleum in the energy mix, stratospheric oil prices leading into July 2008 sparked widespread interest in natural gas. Crude prices are well off their $145 high, but the buzz surrounding natural gas has been sustained by fears of aggressive emissions regulation and the recent discovery and proliferation of vast domestic shale reserves, which notably increased last year's production.

Abraham S.H. Bailin does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.