An natural gas based exchange-traded fund made its debut on Thursday. The United States Natural Gas Fund (UNG) is traded on the AMEX.
The fund expects its price to reflect the daily percentage change in the price of natural gas delivered at Henry Hub, La. The fund has an expense ratio of 0.6%.
"UNG intends to invest primarily in those futures contracts that are in the two months closest to expiration because we feel those contracts will permit the fund to best achieve its investment objective," said John Hyland, the fund's portfolio manager in a written statement. He added that the partnership "does not seek to use leverage in the portfolio to achieve its investment goals."
