UNG Fund Description

The United States Natural Gas Fund holds near-month futures contracts in natural gas and swaps on natural gas.

UNG ETF.com Insight

[As of 3/21/14] UNG dominates the segment in size and liquidity, and offers straightforward exposure to natural gas futures. The fund launched in April 2007, and currently holds more assetsUNG dominates the segment in size and liquidity using front-month exposure than all other competitors combined. The fund also leads the segment in liquidity with massive daily volume and tight spreads. UNG uses a plain-vanilla roll strategy for its futures exposure. Like our benchmark, it rolls expiring front-month contracts to the next-nearest month, an approach that makes it especially sensitive to the shape of the futures curve. Natural gas futures are currently in contango, so we expect significant decay in the fund and the bench looking forward, but it’s as close to spot as you’ll get.

1 Year

Performance [as of 03/21/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

UNG (Mkt)
-13.40% 10.05% 15.90% 11.43% -18.58% -29.61% --

UNG (NAV)

-13.74% 10.05% 16.25% 10.90% -18.64% -29.65% --

Front Month Natural Gas

-- -- -- -- -- -- --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

UNG Top 10 Contracts

UNG Summary Data

US Commodity Funds

A company that produces and manages ETFs.

04/18/07

The first date of a fund's operations, as documented by the issuer.

Commodities Pool

The organizational structure of the fund or ETN.

0.82%

The net total annual fee a fund holder pays to the issuer.

$697.84 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$137.25 M

Average dollar value of shares traded over 60 calendar days.

0.04%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

UNG Portfolio Data

Futures

This details how the fund accesses its commodities, whether holdings are physically–held or futures based.

Front Month

Rolling strategy is the process by which a fund deals with contract expiration.

N/A

How often a fund rebalances its holdings back to the stated target weights in the prospectus.

-0.11%

This is the weighted average decay of all contracts held by a fund, calculated from the current contract to the current front month contract.

-1.24%

This is the weighted average decay of all contracts held by a fund, calculated from the current contract to each holding's preceding contract.


1

The number of single commodities represented in the fund holdings.

UNG Index Data

Front Month Natural Gas

This is the benchmark an ETF is desigend to track or replicate.

Single Asset

A set of rules that the underlying index provider follows to weight its constituent securities.

Single Asset

A set of rules that the underlying index provider follows to select its constituent securities.

S&P GSCI Natural Gas

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to UNG

GAZ, NAGS, DCNG, UNL

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

UNG ETF.com Efficiency Insight

[As of 3/21/14] UNG plays the role of first-to-market granddaddy in the natural gas segment. The fund has gathered more assets than all other funds in the segment combined since its April 2007 launch, signaling stability. Expenses are in line with the segment average, at 101 bps. The fund gets part of its exposure via swaps, but we see minimal counterparty risk. Any cap gains on UNG are taxed at a blended 60% long-term/40% short-term rate, reported on a K-1.

Total Return

Performance [as of 03/21/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

UNG (Mkt)
-13.40% 10.05% 15.90% 11.43% -18.58% -29.61% --

UNG (NAV)
-13.74% 10.05% 16.25% 10.90% -18.64% -29.65% --

Front Month Natural Gas
-- -- -- -- -- -- --

S&P GSCI Natural Gas
-13.26% 4.99% 10.87% 0.11% -18.90% -29.12% -33.0%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

UNG Portfolio Management

0.82%

The net total annual fee a fund holder pays to the issuer.

-1.20%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

-0.85%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-1.94%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

UNG Tax Exposure

27.84% / 27.84%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

Yes

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

UNG Fund Structure

Commodities Pool

The organizational structure of the fund or ETN.

Yes

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

N/A

An indicator of whether or not a fund actively lends its portfolio holdings.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

N/A

The multiple of the underlying index which the fund aims to deliver. For funds that reset, the leverage factor holds true only for the reset period, often just 1 day.

N/A

The time period at which the fund “trues up” its leverage factor. For funds that reset, the reset period–often just 1 day–is the length of time over which the fund delivers its leverage factor.

UNG ETF.com Tradability Insight

[As of 3/21/14] UNG trades extremely well for investors of all stripes. High volume supports tight spreads, making it easy for retail investors to trade in and out. Institutions and hedge funds moving blocks of shares should also see low transaction costs when working with liquidity providers.

Average Spread

Premium/Discount

Volume

UNG ETF.com/ Block LiquidityAs of 07/24/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of UNG. UNG is rated a 5 out of 5.

UNG Tradability

5,637,002

The average number of shares traded during a 60 day period.

$137.25 M

Average dollar value of shares traded over 60 calendar days.

4,500,738

Median number of shares traded over the past 45 trading days.

$110.59 M

Median dollar value of shares traded over the past 45 trading days.

0.04%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

$0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 60 days, in dollars.

0.04%

The middle value in the ranked set of all premium/discount values over a 12-month period.

2.10% / -5.14%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

50.06

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

731,846

The total number of net outstanding options contracts for an ETF.

N/A

Indicates whether there is an active futures market for the underlying index tracked by the fund, which can help market makers hedge their trading activity.

--

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

UNG ETF.com Fit Insight

[As of 3/21/14] UNG offers straightforward exposure to natural gas futures, meaning it holds near-month contracts and rolls to the next-nearest months. This method increases the sensitivity to underlying gas prices and to the shape of the futures curve, currently in contango. Our benchmark also uses front-month exposure, and currently both the fund and our benchmark show significant expected decay looking forward.

UNG Sector Breakdown

UNG Segment Benchmark
100.00% 100.00%
0.00% 0.00%
0.00% 0.00%
0.00% 0.00%
0.00% 0.00%

UNG Top 10 Contracts

UNG Performance Statistics

0.99

The degree to which the fund and its segment benchmark move up and down in unison.

1.01

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

1.02

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.01

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.01%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

UNG Top 5 Collateral Investments

No data available

UNG Expected Decay

UNG Segment Benchmark
Commodity Weight Decay
to Front
Decay to
Preceding
Commodity Weight Decay
to Front
Decay to
Preceding
Natural Gas 100.00% -0.11% -1.24% Natural Gas 100.00% -0.37% -4.36%
Weighted Average
Expected Decay:



Weighted Average
Expected Decay:


Expected Decay: Decay-to-front measures the annualized price difference between the price of a futures contract and the current front-month futures price for the commodity. Decay-to-front shows the annualized expected cost (appreciation) should the front month price not change between now and contract expiration. We annualize this cost to make it uniform for all contract months. Decay-to-preceding similarly measures the annualized price difference between a futures contract and the contract before it on the curve and shows the annualized expected cost (appreciation) should the spot prices and the shape of the curve remain intact. The figures are presented as decay, so a negative number implies an expected gain and a positive number implies an expected loss. Front month positions are evaluated against the next available contract ahead of it on the curve.

Term Structure