Do All Natural Gas ETFs Lose Money?
Profiting from a contangoed natural gas market.
Today natural gas prices sit near 10-year lows. The appreciation that the broader commodity space has seen over the past few years has prompted interest in the laggardly energy commodity. At the root of rock-bottom natural gas prices lies a persistent supply glut that does not look to abate anytime soon.
While establishing a long position in natural gas at historically low prices certainly seems enticing, there are a number of obstacles that complicate the issue. Here we discuss the nature of the natural gas industry, how the fundamentals have impacted the futures markets, and how to gain both long and short exposure to natural gas and the costs and benefits of each.
Abraham S.H. Bailin does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.