Posts tagged ‘natural gas etf’

These Natural Gas ETFs Can Double Your Returns

Natural Gas ETFs are a great way to diversify your investment portfolio. Since we are moving towards cleaner burning and more environmentally friendly fuels, natural gas demand is expected to increase dramatically in the coming years.

There are several different natural gas ETFs to trade out there. Some are based on the natural gas futures price traded on NYMEX. There are others that invest in the exploration of natural gas. Still there are others that own a basket of stocks in companies that transport and deliver natural gas.

If you really want to try to give your investment returns a boost, you may want to look into the Ultra Oil & Gas ProShares and the Ultra Short Oil & Gas ProShares. These 2 ETFs are based on the Dow Jones US Oil & Gas index. The ETF seeks daily investment results that correspond to twice (200%) the amount of the index. This means they are using leverage to boost the returns.

The difference between the 2 funds is this. The Ultra Oil & Gas ProShares are a bet that the market for those stocks will increase. The Ultra Short Oil & Gas is a bet that the basket of stocks in that index will go DOWN.

These funds can be considered risky since they try to give you 2 times the return. You should investigate further to see if these Natural Gas ETFs fit into your investment portfolio.