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Tuesday, 02/06/2024 1:03:06 PM

Tuesday, February 06, 2024 1:03:06 PM

Post# of 2469
Natural Gas Futures ETFs Are for Short-Term Bets
Here's where contango comes in. Because the futures contract that expires further out is often more expensive than the one the funds are holding, the funds lose money on that rollover.

Because these funds are almost always losing value, buying and holding futures-based funds like UNG or BOIL doesn't make sense as a long-term play on a commodity. This is one of the key reasons why the funds have underperformed the price of natural gas.
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