The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( TheStreet) -- The worst investment in the world, the United States Natural Gas fund ( UNG) has again revealed how cruddy it is by announcing a four-for-one reverse split as of Feb. 22. Anyone who still holds this turkey expecting it to even approximate the price movement of natural gas should be convinced by this last move to get out of this horrible fund. Futures-based ETFs start with a grave disadvantage in the ETF world: instead of using various groupings of stocks to replicate the movement in a sector, they must use futures contracts and over-the-counter swaps to try and capture the price movement of an underlying commodity. While there may be a terrific appetite for investors afraid or unwilling to engage in the futures market to bet on prices of natural gas or crude oil, there is really no good way to represent these commodities like stocks. Most of these ETFs are programmed to fail.
"Really, it's all about fracking," the US Funds CIO John Hyland said in trying to defend the miserable performance of this stinker. Really, if these fund managers had a drop of integrity left, they'd dissolve the fund, give the remaining fund-holding suckers their 20 cents on the dollar they've invested and slink off into the sunset, perhaps to dream up another money-sucking and useless investment for unwitting yet willing retail punters. But no, there's always an excuse for mediocrity and a reason to keep losers like UNG alive. But make no mistake, even if the fund managers have found another six month or even one-year extension of the UNG fund, it is inevitably headed for a price of zero -- it's just a matter of when. If you have held or are holding shares of the UNG still, I will advise you now, as I have several times in the past beginning in 2009 to get the heck out. There is not one good reason to be in this fund -- not unless you like giving away money to bad fund managers selling flawed products.