| Energy ETFs a Safer Bet This Week Than Natural Gas Futures | |
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Forces Align in Mid-May to Stall Natural Gas Price Rally (Continued from Prior Part) Different approaches to investing in natural gas
Natural gas futures declined by 2.2% this week. For retail investors that don’t have easy access to the futures market, there are other, safer, low-cost ways to bet on natural gas prices.
The first is the United States Natural Gas Fund (UNG), an ETF that tracks prompt natural gas futures. Shares of UNG trade on the NYSE like company stock. UNG shares declined by 2% this week.
The second is an ETF such as the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which holds many American energy companies. Many of these energy companies have exposure to natural gas prices due to their upstream (gas production) operations. So, because of the indirect exposure to volatile natural gas prices, an ETF like XOP is a safer, more diversified, option for more conservative investors. XOP lost just 0.2% this week.
As we can see in the graph above, UNG outperformed natural gas this week. XOP underperformed UNG for the most part, but toward the end of the week, it delivered higher returns than either natural gas prices or UNG. This is because XOP also holds companies with exposure to crude oil prices, companies that mostly had a bullish run this week. Follow our weekly recap of crude prices on our Energy and Power page. For last week’s recap, read Crude Prices, Refined Products See Mid-May Gains.
XOP holds premier American gas producers including Noble Energy (NBL), Rice Energy (RICE), Range Resources (RRC), and PDC Energy (PDCE). NBL and RRC are also part of the iShares U.S. Energy ETF (IYE), making up ~1.6% of the ETF.
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Noble Energy
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CODE : NBL |
ISIN : US6550441058 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Noble Energy is a producing company based in United states of america. Noble Energy is listed in United States of America. Its market capitalisation is US$ 4.9 billions as of today (€ 4.1 billions). Its stock quote reached its highest recent level on May 09, 2008 at US$ 97.39, and its lowest recent point on August 31, 2020 at US$ 10.00. Noble Energy has 492 191 992 shares outstanding. |