Natural Gas 3x Leveraged ETF Comparison and Review

If you're looking to amplify your natural gas investments, 3x leveraged ETFs are a popular choice. These funds use financial derivatives to triple the daily return of the underlying natural gas futures contract.

The most well-known 3x leveraged natural gas ETF is the United States Natural Gas Fund (UNG), which has been around since 2007. This fund is designed to track the daily changes in the price of natural gas futures contracts.

UNG has a relatively high expense ratio of 0.95%, which may eat into your investment returns. However, its trading volume is typically high, making it easier to buy and sell shares.

The natural gas 3x leveraged ETF is designed to provide a return that is three times the daily performance of natural gas futures contracts.

It typically tracks a specific natural gas futures contract, such as the Henry Hub natural gas futures contract.

The ETF's investment strategy involves buying or selling natural gas futures contracts to achieve its leveraged objective.

The fund's net asset value (NAV) is calculated daily and reflects the value of its holdings.

The ETF's expense ratio is typically around 0.95%, which is relatively low compared to other leveraged ETFs.

This means that for every $100 invested, around $0.95 is spent on management fees and expenses.

If you're looking for other ETCs with a similar investment focus, there are a few options to consider.

The WisdomTree WTI Crude Oil 2x Daily Leveraged ETC has a fund size of 89 million euros and a TER of 0.98% per annum.

Here are some similar ETCs to consider:

WisdomTree offers several ETCs with a similar investment focus, such as leveraging commodities like crude oil and natural gas.

One of these ETCs is the WisdomTree WTI Crude Oil 2x Daily Leveraged, which has a fund size of 89 million euros and a TER of 0.98% per annum.

The WisdomTree Natural Gas 3x Daily Leveraged ETC also falls under this category, with a fund size of 53 million euros and a TER of 0.99% per annum.

Another ETC with a similar focus is the WisdomTree WTI Crude Oil 3x Daily Short, which has a fund size of 32 million euros and a TER of 0.99% per annum.

The WisdomTree Natural Gas 2x Daily Leveraged ETC has a fund size of 17 million euros and a TER of 0.98% per annum.

The majority of these ETCs use a swap-based replication method, which is a common approach in the industry.

Here's a brief overview of some of the ETCs with similar investment focus:

The Solactive Com Fut SL TR EUR Index is a type of investment vehicle that tracks a specific basket of assets.

It's worth noting that this index is a futures-based index, which means it's focused on commodities trading.

The index includes a single cash and other positions, denoted as "1" in the table.

This is a relatively straightforward investment vehicle, with no stocks or bonds included in its composition.

Here's a breakdown of the index's composition:

The WisdomTree Natural Gas 3x Daily Leveraged fund's age isn't explicitly stated. However, the source of its data is mentioned as Morningstar.

The data provider for the fund is Morningstar.

The performance of a natural gas 3x leveraged ETF can be quite volatile. The WisdomTree Natural Gas 3x Daily Leveraged ETF has seen significant fluctuations in its performance over the past few years.

In the past 1 week, the ETF has gained +37.15% in performance. This is a remarkable increase in a short period of time. In contrast, the ETF has seen a -99.92% decline in performance over the past 3 years.

Here's a breakdown of the ETF's performance over different time periods:

The ETF's performance has also varied significantly from year to year. In the current year, the ETF has gained +96.81%, while in 2024 it declined by -64.87%.