Natural Gas ETFs Down Over 24% in 2014
Natural gas prices were weak throughout 2014 due to warmer than average global temperatures and record-high production levels, which reduced demand. In December alone, the price of natural gas in the US fell by 16.3%. Several natural gas investment funds actively trade in the US in the form of exchange traded funds (ETFs).
ETFs are set up to track the daily performance of an underlying index or strategy, allowing investors to buy a single security instead of many individual securities.
The following ETFs that track natural gas were down over 24% each in 2014:
|Ticker||Fund Name||2014 Performance|
|FCG||First Trust ISE-Revere Natural Gas||-41.99%|
|UNG||United States Natural Gas||-28.61%|
|UNL||United States 12 Month Natural Gas||-24.74%|
The First Trust ISE-Revere Natural Gas ETF (NYSEArca: FCG) is comprised of 26 equity holdings tied to natural gas production, while the two natural gas funds (NYSEArca: UNG and NYSEArca: UNL) invest directly in the raw commodity to reflect the futures and spot prices of natural gas, respectively. Additionally, FCG may use leverage for investment purposes.
If your financial advisor or stockbroker recommended that you invest in natural gas securities, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in natural gas securities, then you may have a claim for misrepresentation. If your investment objective was to only invest in safe and stable investments, you may have a claim for unsuitability. If natural gas securities made up a large portion of your portfolio, then you may have a claim for over-concentration and lack of diversification. If your advisor purchased this fund without your knowledge, you may have a claim for unauthorized trading. If your advisor purchased this fund on margin, you may have a claim for excessive use of margin and negligence.
The attorneys at Carlson & Associates, P.A., located in Miami, Florida, represent investors who have lost money due to the improper conduct of financial advisors. If you would like to have a free consultation, we can be reached at (305) 372-9700 to discuss your options.