Natural Gas ETF 'Taxed' by Delay

As I have mentioned in previous posts creation difficulties are not the only problem with UNG.

There are compelling reasons to invest in natural gas ), and fortunately there is another ETF that offers investors exposure. The First Trust ISE-Revere Natural Gas (FCG Quote) tracks a basket of natural gas companies. Investors interested in natural gas exposure can use FCG to gain access to the industry.

Just one month before UNG creation was halted on June 7, the U.S. Commodity Futures Trading Commission announced that it would hold hearings this summer to consider imposing position limits for "all commodities of finite supply." See this article..

Any change in these regulations could further impact the pricing of UNG or even force UNG's issuer to redesign the fund to meet requirements. In the meantime, investors should stay clear of UNG until the dust settles.