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Natural Gas ETF (UNG) Hits New 52-Week High

Sanghamitra Saha
·1-min read

Investors seeking momentum may have United States Natural Gas ETF UNG on radar now. The fund recently hit a new 52-week high. Shares of UNG are up approximately 150% from their 52-week low of $9.33/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

United States Natural Gas ETF (UNG)

The underlying Natural Gas Price Index is the futures contract on natural gas as traded on the NYMEX. The fund’s expense ratio is 1.35%.

Why The Move?

Natural gas futures spiked to a fresh 13-year high on tight supply conditions, adverse weather conditions and declining inventories. With this, natural gas is up 65% so far this year. The jump in prices came as the conflict between Russia and Ukraine has sparked fears of global supply disruption in an already tight-supply market.

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Western countries have slapped severe sanctions against Russia over Ukraine that has disrupted trade flows. Sanctions by the United States and other countries will force Russia to supply less natural gas, thereby pushing prices higher.

More Gains Ahead?

The fund has a positive weighted alpha of 144.60. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.



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United States Natural Gas ETF (UNG): ETF Research Reports
 
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