Natural Gas Fund Runs out of Shares

Ian Salisbury and Daisy Maxey are reporting that the US Natural Gas Fund (UNG) has stopped issuing new shares while waiting on SEC approval to expand.

The $3.7 billion fund has recently experienced strong demand, growing from only $670 million in February. UNG’s legal structure limits the number of shares it can create and the regulatory approval process that would free up more shares has not kept pace with the rapid growth of the fund.

The investment objective of UNG is to reflect the changes of the price of natural gas in percentage terms. UNG invests primarily in those futures contracts that are in the two months closest to expiration.

For more on Investing in Natural Gas with ETFs, see the ETF Directory.

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