United States Natural Gas Fund, LP
UNG CommodityUpdated: Jul 5, 2026, 21:17 UTC
Key Metrics
About This ETF
The United States Natural Gas Fund, LP (UNG) is a Commodity ETF with an expense ratio (TER) of 1.17% and $517M in assets under management. Year-to-date, UNG has returned -3.98%.
The fund invests primarily in futures contracts for natural gas that are traded on the NYMEX, ICE Futures Europe and ICE Futures U.S. (together, “ICE Futures”) or other U.S. and foreign exchanges. The Benchmark Futures Contract is the futures contract on natural gas as traded on the New York Mercantile Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration.
FAQ — UNG
What is the TER of UNG (United States Natural Gas Fund, LP)?
UNG has a Total Expense Ratio (TER) of 1.17 % per year. That sits above the commodity category median (0.59 % across 9 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has UNG delivered?
Performance for UNG: YTD: -3.98 % · 3-year p.a.: -26.33 % · 5-year p.a.: -25.84 %. Over 5 years, UNG underperforms the commodity category median of +17.52 % by -43.36 pp. Past performance is no guarantee of future returns.
Where can I buy or set up a savings plan for UNG?
UNG is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What is the United States Natural Gas Fund?
The United States Natural Gas Fund (UNG) is an exchange-traded commodity fund that tracks the price of natural gas through futures contracts on the NYMEX. It holds no physical gas; instead it continuously rolls the near-month contract. With roughly $533M in assets, UNG offers focused, highly volatile exposure to a single energy commodity. Investors use it as a tactical trading tool or as a building block to diversify away from stocks and bonds.
Performance overview
UNG's track record is defined by sharp swings and persistent long-term losses. Year-to-date the fund stands at around −1.41%, over three years near −25.06%, and over five years roughly −23.12%. Its 52-week range spanned $9.95 to $18.12, underscoring the elevated volatility.
Key drivers include weather, storage inventories, production levels and liquefied natural gas demand. A structural headwind is roll cost: when the futures curve is upward-sloping (contango), the fund steadily loses value as it rolls from expiring contracts into more expensive later-dated ones.
Risk profile
UNG is among the most volatile commodity instruments available. Natural gas prices react strongly to weather extremes, geopolitical events and shifts in storage levels, which can trigger abrupt price moves.
- Roll risk: In contango, roll costs erode returns over time.
- Concentration risk: A single commodity with no spread across sectors.
- Structural risk: Futures-based rather than physically backed; the annual expense ratio is 1.17%.
- Currency risk: The fund is denominated in US dollars. For euro-area investors, EUR/USD fluctuations add a further layer of return variability.
UNG distributes no income; its dividend yield is 0%.
Who is this ETF for?
UNG suits experienced, tactically minded investors who want to express a short-term view on natural gas prices or seek targeted protection against rising energy costs. As a diversifier, a small allocation can reduce reliance on equities and bonds.
It is far less appropriate for long-term buy-and-hold investors: roll losses, high volatility and the absence of ongoing income all work against durable compounding. Anyone seeking regular distributions, broad diversification or low volatility will not find a fit here. Careful position sizing is essential, and the fund should generally be treated as a satellite, not a core holding.
How UNG compares
Within commodity ETFs, UNG is a highly specialized single-commodity product. Useful comparisons include:
- PDBC (Invesco Optimum Yield Diversified Commodity): Broadly spread across energy, metals and agriculture — far more diversified and less prone to wild swings than UNG's pure natural gas focus.
- GLD & IAU (Gold): Physically backed precious-metal funds with no roll risk, traditionally used as an inflation hedge and safe haven.
- SLV (Silver): Also physically backed, more volatile than gold but structurally steadier than futures products.
At a 1.17% expense ratio, UNG is costlier than many physical metal funds and serves targeted natural gas speculation rather than broad diversification.
Where can I buy UNG?
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