Exchange-Traded Funds

Re: UNG - United States Natural Gas EFT

chamois — Sat, 09 May 2009 16:07:35 GMT

Imho, there is much speculation in the NG futures markets. I would rather play improving NG prices through ownership of a real E&P company or a fund holding those O&G production assets, rather than trading futures. There are plenty of ETF suitable for that purpose

Re: UNG - United States Natural Gas EFT

buycougs — Fri, 08 May 2009 01:41:01 GMT

Miles

Be prepared for the monthly swings that take place in this fund (and its equivalents in oil) when the contract rotates to the front month. The ETF must sell the current month futures prior to the witching date. It must also buy the next month contract at the same time.

This causes fits in the market as these etfs have become major quantity traders. You will see peaks and valleys in the last week depending on the market situation. You probably want to study the timeline to see if you want to schedule monthly buy and sells to take advantage of the volatility.

Good Hunting.

UNG - United States Natural Gas EFT

MilesinME — Thu, 07 May 2009 12:46:22 GMT

I'd like to take advantage of the low pricing levels in natural gas to take advantage of pricing recover over the next year or two.

This ETF, in a process a don't completely understand, seeks to minmick the market price of nat gas at a major distribution point in the mid-west. In the past the fund tracks the price fairly well but tends to under perfom the market price by a small margin.

Does anyone have any experience or thoughts about this Fund?