Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

UNG’s Woes Visualized

Get Ready To Buy Natural GasThe United States Natural Gas Fund, LP (NYSEARCA:UNG) is by far the most popular ETF offering exposure to this fossil fuel. But the fund has come under heavy fire in recent years, as its failure to accurately track NG over the long term has been a point of contention for many. Since inception, the downward pressures on NG have made UNG one of the worst performing ETFs of all time, as the product was forced to endure multiple reverse splits just to stay open. At its worst, UNG was sitting down 98% since inception, though it has recovered slightly in recent months [for more natural gas news and analysis subscribe to our free newsletter].

In fact, United States Natural Gas Fund, LP (NYSEARCA:UNG) has never been able to finish out a calendar year in the black. The fund debuted in April of 2007, making its first full calendar year 2008. Though the NG giant had a positive seven or eight months to close out 2007, it have been all downhill since. To give investors a better idea of just how poorly UNG has performed, we offer a chart of its annual performance for the past four years.

UNG’s Woes Visualized

So if the fund has performed so poorly over time, why does anyone keep investing? The answer is quite simple; United States Natural Gas Fund, LP (NYSEARCA:UNG) was designed as a trading product and not as one for investors to hold over the long term. The fund is among the most liquid and tradeable in the world, as it has more than $1.1 billion in total assets and trades more than 8.7 million shares on a daily basis. In reality, the fund should only be used by those who have the discipline and time to watch over its movements carefully [see also Citi’s Energy Outlook For 2013].

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.