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Take A Look At Some Other Options For The Natural Gas ETF (UNG)

|Includes: FCG, GAZ, The United States Natural Gas ETF, LP (UNG)

natural-gas“With oil at $74 a barrel and natural gas at $2.75 per tcf (thousand cubic feet), the price divergence between the two commodities is near a 20-year high. These prices represent a near 27-to-one natural gas-to-oil ratio, compared with nearly a 13-to-one average this past year,” Sham Gad Reports From Investopedia.

“United States Natural Gas (NYSEARCA:UNG) is a pure play ETF on the commodity itself. Not surprisingly, it trades at a near 52-week low. However at current levels, investors should be aware that it trades at a premium to the NAV of the ETF. This discount to NAV continues to narrow however,” Gad Reports.

“Periods of pessimism can often spell wonderful opportunity for patient value investors. It looks like natural gas is going through such a moment,” Gad Reports. The Natural Gas Fund (UNG) has continued to move down hitting another 52 week low today. 

Chart for United States Natural Gas (<a href='https://seekingalpha.com/symbol/UNG' title='The United States Natural Gas ETF, LP'>UNG</a>)

Here are two other fund products that follow the Natural Gas industry which are work a look.  The first one is the First Trust ISE-Revere Natural Gas ETF (NYSEARCA:FCG) and the second ETN is the iPath DJ AIG Natural Gas TR Sub-Idx ETN (NYSEARCA:GAZ). 

The ETF (FCG) seeks to replicate the ISE-REVERE Natural Gas index and the fund invests at least 90% of assets in common stocks that comprise the index.  Here is a look at the top ten holdings below:

 

TOP 10 HOLDINGS (FCG) ( 40.71% OF TOTAL ASSETS)  
 
Company Symbol % Assets
CIMAREX ENERGY CO (NYSE:XEC) 3.94
GOODRICH PET HLD NEW (OTC:GDP) 3.71
MARINER ENERGY INC (ME) 4.29
NEWFIELD EXP COM (NYSE:NFX) 3.72
PENGROWTH EGY UTS (NYSE:PGH) 3.7
PIONEER NATURAL RES (NYSE:PXD) 3.93
QUICKSILVER RES INC (NYSE:KWK) 5.1
SANDRIDGE ENERGY INC (NYSE:SD) 4.43
ST MARY LAND EXPL (NYSE:SM) 3.82
W&T OFFSHORE, INC. (NYSE:WTI) 4.07

 

 
 

And here is the profile for the other fund: The investment (GAZ) seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones-AIG Natural Gas Total Return Index. The fund is designed to reflect the performance of natural gas. The index is composed of the Henry Hub Natural Gas futures contract traded on the New York Mercantile Exchange.

 Disclosure:  No Positions