Share-split context: A reverse split was recorded on Jan 24, 2024 with coefficient 0.25. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: United States Natural Gas Fund (UNG)

What this ETF is trying to do

The United States Natural Gas Fund (ticker: UNG) is an ETF that trades on the NYSE. It is designed to track the price of natural gas.

What the numbers show

The current price of UNG is $11.03. When looking at how the fund has performed, it is important to look at "price returns." A price return only measures how much the share price has changed.

According to the data:

• Year-to-Date (YTD) Price Return: Approximately -10.03%

• One-Year Price Return: Approximately -19.96%

• Three-Year Price Return: Approximately -64.37%

• Five-Year Total Return: Approximately -86.14%

Because this fund has a history of reverse splits, we use split-adjusted returns to see how the value has changed over time. A reverse split happens when multiple old shares are combined into fewer new shares. This makes the price per share go up mechanically, but it does not increase the actual value of your investment.

Income and distribution explanation

Some investors look for ETFs that pay them cash, which is called a "distribution yield." For UNG, the distribution yield is 0%. No distributions were detected over the last 12 months. This means the fund does not currently provide cash income to investors.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. StockValueFinder uses an "erosion score" to measure this risk.

UNG has an erosion score of 55, which is labeled as "moderate price erosion." This indicates a moderate level of risk regarding how the share price has moved over time. While there is no "severe erosion-risk flag" active, the moderate score reflects the significant price declines seen in the three-year and five-year return data.

Pros

• The fund provides direct exposure to the price of natural gas through a single ticker.

Cons

• The fund has experienced significant share-price declines over the last one, three, and five years.

• There is no recorded income or distribution yield for investors seeking cash payments.

• The fund has a history of reverse splits.

Beginner takeaway

UNG is an ETF that tracks natural gas prices. It is important to note that this fund has shown significant price declines over long periods. Additionally, it does not pay out cash distributions and has a moderate erosion-risk score based on its price history. Always remember that past performance does not guarantee future results.