| While many investors are now well aware of the | | | | annoyances. |
| commodity exchange traded Funds (ETFs) as they | | | | Because of their volatility, the natural gas ETFs |
| have been around for some time now, there is an ETF | | | | exchange traded funds have some analysts treating |
| on the market that is creating quite a furore. The | | | | them as very high risk and warning investors away |
| natural gas EFT has done very well after being traded | | | | from them. Due to the lack of liquidity in the gas |
| for a little over a year. The Victoria Bay Asset | | | | futures, there is a fear that if some companies pull out |
| management company introduced this EFT in April of | | | | their contracts, there would be no way of recovery. |
| 2007 which has risen by more than 40% in the first | | | | Some experts on the other hand see a bright future |
| year of operation. Victoria Bay, who also manages a | | | | for the gas ETFs which are expected to grow, albeit |
| host of other energy ETFs, plan to introduce other | | | | slowly. The wild weather fluctuations we are |
| ETFs soon. | | | | experiencing are the reason. This has increased the |
| The natural gas ETFs trade in futures commodities by | | | | use of gas for heating during the harsh winters and |
| tracking the movement of prices on natural gas and | | | | running air-conditioners in the extremely hot summers |
| make future contracts investments. The natural gas | | | | to the extent that the gas is used up as soon as it is |
| ETFs are quite lively, based on predictions as they are. | | | | pumped. The experts also recommend buying yearly |
| This works out quite well though for those who also | | | | contracts to benefit from both seasonal effects. |
| hold crude oil ETFs, as the prices tend to go in the | | | | Congress is looking at an energy bill aimed at reducing |
| opposite direction with oil thus offsetting the oil ETFs if | | | | the generation of greenhouse gases. Many countries |
| in one has both commodities in their energy portfolio. | | | | around the world are also looking at ways of |
| The Investment Company Act of 1940 does not cover | | | | combating global warming. Natural gas produces less |
| natural gas ETFs as they are securities. A good | | | | greenhouse gases that other fuels and should soon be |
| number of investors are not, therefore, comfortable | | | | in greater demand. For the ones still studying natural |
| with them, however others are quite happy to dive in | | | | gas ETF's, this new commodity could be your best |
| and enjoy the absence of these government | | | | choice. |