Buoyed by rebounding energy prices, the United States Natural Gas Fund (NYSE: UNG) gained 2.6 percent last week while the equity-based First Trust ISE-Revere Natural Gas Index Fund (NYSE: FCG) surged a jaw-dropping 17.6 percent and that is even with FCG sliding 1.8 percent on Friday.
Impressive gains to be sure, but last week's showings do little to dent year-to-date losses of 21.6 percent and 34.2 percent, respectively, for UNG and FCG. Those gains may be short-lived as the weather phenomenon known as El Nino is expected to lead to a mild a winter for the East Coast and Midwest, likely tempering demand for natural gas.
Filling Up On UNG
That has not prevented traders from pumping cash into UNG since the start of October. UNG, the largest futures-based natural gas ETF, is now home to $650 million in assets under management thanks to the arrival of $100 million in fresh assets since October 1. That does not ...
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