United States Natural Gas Fund, LP
United States Natural Gas Fund, LP is a commodity pool structured to provide investors with exposure to natural gas prices through exchange-traded futures and related derivatives. It is organized in the United States and is managed by United States Commodity Funds LLC, with its portfolio centered on natural gas interests traded on U.S. and foreign exchanges.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueExchange-traded futures positions tied to the Henry Hub natural gas benchmark and related contracts.
Options, forwards, cleared swaps, and OTC swaps used to supplement or manage exposure.
Cash and cash equivalents held to support margin, liquidity, and operational needs.
Customers
UNG is bought by investors seeking indirect exposure to natural gas prices, including those using it as a trading vehicle or tactical hedge. The fund also serves market participants that want exchange-traded access to commodity price movements without holding physical gas or entering bilateral commodity contracts. Its investor base is therefore centered on financial market users rather than end consumers of energy.
Buy shares for simple exchange-traded exposure to natural gas price moves.
Use the fund for tactical commodity exposure or portfolio hedging.
Trade the fund for short-term views on natural gas volatility and direction.
Use the product to offset energy-price risk in broader portfolios.
Strategy
UNG’s strategy is to provide indirect exposure to natural gas prices through a portfolio of futures and related natural gas interests. The fund uses additional derivatives and cash instruments as needed for regulatory, liquidity, and risk-management purposes, while targeting daily price sensitivity rather than long-term tracking of any single contract. This structure is designed to make the product usable for short-term exposure and hedging in a highly volatile commodity market.
The fund's core value proposition is indirect access to Henry Hub price moves.
Additional instruments help manage margin, regulatory, and market-condition needs.
Investors use the fund for tactical exposure rather than physical commodity ownership.
Geography
UNG is organized in the United States and its exposure is tied primarily to U.S. natural gas pricing, especially the Henry Hub benchmark in Louisiana. The fund also references U.S. and foreign exchanges for its derivative instruments, and its risk disclosures highlight international supply-demand effects, especially Europe and LNG trade flows. Geography matters because domestic U.S. weather, storage, production, and export dynamics drive the benchmark, while overseas disruptions can still influence pricing.
Risks
UNG is exposed to commodity price volatility, tracking error, and the structural risks of rolling futures contracts in a market that can move sharply with weather, storage, production, and geopolitics. Because the fund holds derivatives rather than physical natural gas, investors face correlation risk, valuation risk, and the possibility that the fund will not match spot gas performance over longer periods. Tax treatment, OTC counterparty exposure, and climate-policy restrictions on oil and gas can also affect returns and portfolio behavior.
- Natural gas price volatilityImpact: HighLikelihood: Medium
NAV moves with futures prices, which can change rapidly with supply-demand shocks.
Exposure: Benchmark Futures Contract and related natural gas interests
- Correlation and tracking errorImpact: HighLikelihood: Medium
The fund is not designed to match spot gas over periods longer than one day.
Exposure: Daily NAV versus spot natural gas and longer-horizon returns
- Climate and energy-transition policyImpact: MediumLikelihood: Medium
Restrictions on oil and gas use can affect commodity demand and pricing dynamics.
Exposure: Natural gas market demand and investor sentiment
- OTC and counterparty riskImpact: MediumLikelihood: Low
OTC swaps and cleared derivatives depend on counterparties and valuation inputs.
Exposure - Tax and regulatory riskImpact: MediumLikelihood: Low
Commodity pool and derivative-based structures can face complex tax and CFTC/NFA rules.
Exposure: Fund operations and investor after-tax returns
Accounting
Judgemental itemsFutures, options, and swaps are marked to market and can materially move NAV.
Impact: Directly affects reported asset values and period results
Non-exchange-traded contracts require present-value estimates of future cash flows.
Impact: Introduces estimation uncertainty in reported investments
Interest on cash and cash equivalents is estimated daily and adjusted monthly.
Impact: Can create small timing differences in income recognition
Futures positions require collateral and margin settlements that affect liquidity.
Impact: Impacts cash balances and short-term asset presentation
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Last updated: 24/09/2026