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Natural Gas ETF (UNL) Hit a 52-Week high

Sanghamitra Saha
·2 min read

For investors seeking momentum, United States 12 Month Natural Gas ETF UNL is probably on radar now. The fund just hit a 52-week high, and is up roughly 82.6% from its 52-week low price of $7.24/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

UNL in Focus

The Natural Gas Price Index is the near month futures contract to expire and the contracts for the following 11 months, for a total of 12 consecutive months. The product charges 90 bps in fees per year.

Why the Move?

Like in most winters, natural gas prices started receiving warmth from the chills this year. We are entering the winter heating season with natural gas storage down about 7.2% from the five-year average. Per EIA, natural gas inventory was 16.8% lesser than the year-ago level.

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Normally, Arctic Chills give life to this commodity every winter. The cold snap boosts electricity demand across the region, putting focus on natural gas. his year too, forecasts of colder-than-expected temperatures in the United States might drive natural gas prices higher. U.S. natural gas futures have now spurted to a seven-year high due to supply crunch heading into the winter-heating season.

More Gains Ahead?

Currently, UNL has a positive weighted alpha of 72.71. 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 12 Month Natural Gas ETF (UNL): ETF Research Reports
 
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Zacks Investment Research