Natural Gas ETFs Are in the Spotlight

 |  Includes: FCG, GASL, GASX, GAZ, NAGS, UNG
by: Tom Lydon

Natural gas prices and related exchange traded funds are trying to reverse course after years of losses.

As stated in the weekly natural gas update from the U.S. Department of Energy, demand increased at electric power plants to meet rising energy needs for air conditioners during warming weather conditions, reports Stephen Rose for Bloomberg. U.S. consumption expanded 1.8% for the week of May 17 to May 25 as summer-esque temperatures struck the Northeastern and Southern U.S. regions.

Meanwhile, on the New York Mercantile Exchange, futures prices also indicate that traders are expecting higher weather-related demand. Additionally, futures prices are also being propped by the drop in supply from the reduced number of rigs drilling for natural gas. However, production still exceeds last years output by 6% due to the new shale gas fields.

The sector ETFs include:

  • First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG) is up 2.5% in the last week.
  • U.S. Natural Gas Fund (NYSEArca: UNG) is up 5.00% in the last week.
  • Teucrium Natural Gas (NYSEArca: NAGS) is up 1.8% in the last week.
  • iPath Dow Jones UBS Natural Gas ETN (NYSEArca: GAZ) is up 4.82% in the last week.

In an attempt to set itself apart from the competition, Direxion, more known for its suite of leveraged and inverse ETFs, recently changed the ticker symbols for the Direxion Daily Natural Gas Related Bull 2x Shares and the Direxion Daily Natural Gas Related Bear 2x Shares, which were previously traded under the tickers FCGL and FCGS, respectively.

  • Direxion Daily Natural Gas Related Bull 2x Shares (NYSEArca: GASL)
  • Direxion Daily Natural Gas Related Bear 2x Shares (NYSEArca: GASX)

Max Chen contributed to this article.