UNG is the symbol for United States Natural Gas EFT
With headlines such as
- “Natural Gas could see a sharp rebound and Natural Gas” and “Energy EFTs ride Oil Surge to top-flight returns”
and a chart that looks like the dowside is in.
I rate this EFT a BUY at $14. I will execute a buy of 1/4 of my total investment planned for this EFT.
Natural gas futures contracts were the worst performing major commody so far this year. Have we seen a bottoming of this EFT? I think so, here’s why:
1. EFT price trend is flatening at the bottom.
2. The 1 year return on this stock is minus 75% – oversold? I think so since the largest part of the drop occurred in 2008 at the same time the broader market crashed.
3. Low expense ratio, only 0.6%
4. Energy prices are going up, should bring up all energy sectors.