This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A Less Risky Natural Gas ETF

Stocks in this article: UNG GAZ FCG CVX XOM

NEW YORK ( TheStreet) -- After kicking off the year on an encouraging note, natural gas prices have returned to their losing ways. With oversupply still a problem, the futures-tracking United States Natural Gas Fund (UNG) has once again retreated to all-time lows.

Meanwhile, although it has remained buoyed around 2012 highs, the iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) (GAZ) is in no shape to be played with, either.

Throughout the past month, explosive demand for this product has caused it to break away from its underlying index, resulting in a staggering premium. This premium has caused the fund to swing wildly in both directions, sending investors on a rollercoaster ride.

Futures-linked natural gas exchange traded products like UNG and GAZ are still best monitored from the sidelines, but investors are not without options. On the contrary, funds linked to natural gas-related equities are still worth considering. This is especially true as producers continue to express interest in this alternative slice of the energy pie.

10 Stocks Owned by the Best Fund Managers

In recent years, we have watched as natural gas has become increasingly popular among integrated energy giants. In 2010, oil magnate Exxon Mobil (XOM) rose to the top of the natural gas industry when it purchased XTO Energy for $25 billion.

Since the purchase, we have other big names from both the U.S. and around the globe express notable interest in U.S. energy assets. Foreign producers like China's Sinopec and French oil giant Total (TOT) are among the names that have spent billions attempting to break into this burgeoning business.

3 Reasons to Get Your iPad 3 at Wal-Mart

This trend has continued into 2012. This week, The Wall Street Journal reported that, even in the face of tumbling prices, Chevron (CVX) is still trying to ramp up its own shale natural gas production by venturing into the expansive Marcellus Shale formation. The report notes that Chevron is still a relative newcomer to this region, boasting only a year of experience here.

Thanks to their massive size, companies like Chevron and Exxon are able to weather periods of shaky action as they prepare for a potential natural gas revolution. Investors can use this quality to their advantage when turning to a fund like the First Trust ISE Revere Natural Gas Index ETF (FCG).

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs