© Reuters. Storage tanks and gas-chilling units are seen at Freeport LNG, the second largest exporter of U.S. liquified natural gas, near Freeport, Texas, U.S., February 11, 2023. Reuters/Arathy Somasekhar/File Photo
By Suzanne McGee
(Reuters) – Investors have been piling into an exchange-traded fund (ETF) designed to track U.S. prices, in spite of the commodity’s dismal performance in 2023.
The U.S. Natural Gas Fund’s (UNG) price, tied to the performance of futures contracts on the commodity, has plunged 60.7% so far this year, falling 27% in November alone.
Nevertheless, the ETF has drawn inflows totaling nearly $220 million over the course of the last month, according to data from LSEG Lipper. That is the equivalent of about a quarter of the $946 million in inflows the fund saw in the first 10 months of the year.
Analysts said the drop in the ETF’s price came alongside a fall in the price of natural gas sparked by milder than usual weather across the United States in recent weeks.
Investors betting that more typical weather patterns will kick in later in the season are likely taking advantage of the ETF’s price slump, said Stacey Morris, head of energy research at…
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