What are natural gas ETFs?
Natural gas heats homes, fuels power plants and supplies factories. Companies drill for it, process it and move it through pipelines. The five US-listed natural gas ETFs in this guide give investors exposure to it in two very different ways. Only one, the First Trust Natural Gas ETF (FCG), owns company shares. It tracks the Nasdaq FactSet Natural Gas Index and holds 43 stocks. Its largest holdings are Western Midstream Partners (4.91%), Hess Midstream (4.83%), EOG Resources (4.5%), ConocoPhillips (4.33%) and Diamondback Energy (4.03%). No stock is held by most of the funds, because the other four own no stocks at all.
Those four are commodity pools. A commodity pool is a fund that holds futures contracts, which lock in a price for gas delivered on a later date. Marygold runs UNG, the United States Natural Gas Fund, and UNL, whose name refers to a 12-month span of contracts. Neither uses leverage. ProShares runs two trading funds. BOIL is leveraged: it aims for twice the daily move of a Bloomberg natural gas benchmark. KOLD is leveraged and inverse: it aims for twice the opposite daily move, so it gains when gas prices fall.
Costs vary widely. The expense ratio is the yearly fee taken from fund assets. It runs from 0.59% for FCG to 1.71% for UNL. The median is 0.95%, which is what BOIL and KOLD each charge. UNG charges 1.01%.
Very little money is invested in these funds. Because the group has only five funds, its five largest hold 100% of the roughly $1.17 billion invested. FCG is the biggest at about $590 million, followed by BOIL at about $307 million. UNL is the smallest at about $17 million.
The largest natural gas ETFs, side by side
Swipe the table to see all 3 funds.
| FCG | UNG | UNL | |
|---|---|---|---|
| Net assets | $589.7M | $111.4M | $17.4M |
| Expense ratio | 0.59% | 1.01% | 1.71% |
| Holdings | 43 | 1 | 1 |
| In the 10 largest | 42.17% | — | — |
| Biggest holding | Western Midstream Partners Lp (4.91%) | — | — |
| Yield | 2.04% | — | — |
| 1-year return | +46.7% | -25.2% | -32.4% |
| 3 years, a year | +10.6% | -30.6% | -22.0% |
| 5 years, a year | +15.1% | -34.8% | -18.7% |
| Worst drop, past year | -19.7% | -43.4% | -40.1% |
| Launched | 2007 | 2007 | 2009 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 27, 2026.
Head to head
FCG vs UNG
FCG owns 43 stocks and tracks the Nasdaq FactSet Natural Gas Index. Its 10 largest make up 42.17% of assets, led by Western Midstream Partners at 4.91%. UNG owns no stocks. It holds natural gas futures, so the two share no holdings. FCG charges 0.59% a year and had a 2.04% yield. UNG charges 1.01% and pays no dividend. As of October 27, 2026, FCG returned 46.7% over one year and UNG lost 25.2%. Their worst drops that year were 19.7% for FCG and 43.4% for UNG. FCG may suit investors who want gas-linked companies. UNG may suit those who want exposure to gas prices through futures.
UNG vs UNL
Both are Marygold commodity pools that hold natural gas futures, so neither owns stocks or pays a dividend. UNL's name refers to a 12-month span of contracts. UNG is larger (about $111 million versus $17 million) and cheaper (1.01% a year versus 1.71%). As of October 27, 2026, UNG lost 25.2% over one year and UNL lost 32.4%. UNL's five-year return (-18.7%) was less negative than UNG's (-34.8%). Their worst drops that year were similar: 43.4% for UNG and 40.1% for UNL. Both may suit investors who want gas price exposure and can accept steep swings.
How have natural gas ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
How natural gas ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| FCG | -59.7% | -58.5% | +45.1% |
| UNG | not yet launched | not yet launched | +73.1% |
| UNL | not yet launched | not yet launched | +83.5% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives natural gas ETFs?
Natural gas prices swing with the weather, which sets heating and power demand, and with storage levels, production and exports. Producers such as EOG Resources, ConocoPhillips and Diamondback Energy, all among FCG's five largest holdings, earn more when prices rise. Pipeline partnerships such as Western Midstream Partners and Hess Midstream mostly collect fees for moving gas, so volumes matter more to them. UNG, UNL, BOIL and KOLD own no companies. They hold natural gas futures, which are agreements to trade gas at a set price on a later date. Replacing expiring contracts with pricier later ones can drag on their returns.
Those ties have produced results unlike the wider stock market's, for better and worse. In the 2008 financial crisis, FCG fell 59.7%, a bit more than the S&P 500's 55.2% drop. In the 2020 pandemic crash it fell 58.5%, against 33.7% for the S&P 500. The 2022 bear market went the other way: while the S&P 500 lost 24.5%, FCG gained 45.1%, UNG 73.1% and UNL 83.5%. Energy prices sometimes fall with the economy and sometimes rise while stocks slump, so these funds have not offered dependable protection in every downturn.
Natural gas ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | FCG First Trust Natural Gas ETF | 0.59% | $59 a year | $589.7M |
| 2 | UNG United States Natural Gas Fund LP | 1.01% | $101 a year | $111.4M |
| 3 | UNL United States 12 Month Natural Gas Fund LP | 1.71% | $171 a year | $17.4M |
Ordinary funds with at least $10 million in net assets. The median ordinary natural gas ETF charges 1.01% a year; leveraged and inverse funds usually charge more.
Do natural gas ETFs pay dividends?
1 of the 3 ordinary natural gas ETFs with a page here paid distributions over the last 12 months, with a median yield of 2.04%.
| Highest yields | Yield | Net assets |
|---|---|---|
| FCG First Trust Natural Gas ETF | 2.04% | $589.7M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a natural gas ETF
- Company shares or natural gas futures. FCG holds 43 stocks and tracks the Nasdaq FactSet Natural Gas Index, so company profits drive its results. UNG and UNL are commodity pools holding natural gas futures, so they follow gas prices and the cost of replacing expiring contracts.
- Yearly costs range from 0.59% to 1.71%. FCG has the lowest expense ratio, which is the yearly fee, at 0.59%. BOIL and KOLD charge 0.95%, UNG 1.01% and UNL 1.71%. Fees come out of returns every year, whatever natural gas prices do.
- How spread out the holdings are. FCG owns 43 companies. Its ten largest holdings make up 42.17%, and the biggest, Western Midstream Partners, is 4.91%. The other four funds are tied to one commodity, natural gas, so they offer no spread across businesses.
- How UNL spreads its futures contracts. As its name suggests, UNL spreads its exposure across 12 months of futures contracts. Its one-year volatility, a measure of price swings, was 35.2% against 59% for UNG as of October 27, 2026. Both still fell over the year.
- Fund size varies widely. FCG is the largest, with about $590 million in net assets. BOIL is next at about $307 million, and UNL is the smallest at about $17 million. Very small funds can cost more to trade and are more likely to close.
- Leveraged and inverse funds behave very differently. BOIL seeks twice the daily move of a Bloomberg natural gas index, and KOLD seeks twice the opposite. Over the year to October 27, 2026, UNG fell 25.2%, yet KOLD, which bets against gas, still lost 8.8%.
What are the risks of natural gas ETFs?
- Gas prices swing sharply. In the year to October 27, 2026, UNG's volatility was 59%. Volatility measures how widely prices swing. UNG also fell as much as 43.4% from a high. Even FCG, a stock fund, dropped 19.7% at its worst.
- Leveraged funds can fall very far. In the year to October 27, 2026, BOIL fell as much as 63.9% from its high and KOLD 72.5%. Because they reset daily, holding them for months can lose money even when gas moves the chosen way.
- Rolling futures contracts costs money. Futures funds have to keep swapping expiring contracts for later ones. When later contracts cost more, a pattern called contango, each swap loses a little value. So UNG, UNL and BOIL can lag the gas price over long periods.
- One fuel, a few big holdings. Every fund here is tied to natural gas. FCG spreads its money across 43 stocks, but its 10 largest make up 42.17% of assets, led by Western Midstream Partners (4.91%) and Hess Midstream (4.83%).
- Tiny funds can close. UNL holds about $17 million. Very small funds can have wider gaps between quoted prices. They are also more likely to shut down, which returns cash to holders at a time they did not choose and may trigger taxes.
Leveraged and inverse natural gas ETFs (2x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all natural gas ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | FCG First Trust Natural Gas ETF | $589.7M | 0.59% | 2.04% | +40.4% | +46.7% | +15.1% |
| 2 | BOIL ProShares Ultra Bloomberg Natural Gas Leveraged | $307.4M | 0.95% | — | -23.8% | -39.6% | -70.8% |
| 3 | KOLD ProShares UltraShort Bloomberg Natural Gas Inverse | $140.0M | 0.95% | — | -12.0% | -8.8% | -12.3% |
| 4 | UNG United States Natural Gas Fund LP | $111.4M | 1.01% | — | -21.4% | -25.2% | -34.8% |
| 5 | UNL United States 12 Month Natural Gas Fund LP | $17.4M | 1.71% | — | -27.6% | -32.4% | -18.7% |
Questions investors ask about natural gas ETFs
What is the largest natural gas ETF?
FCG, the First Trust Natural Gas ETF, is the largest of the five natural gas funds tracked here, with about $590 million in net assets. BOIL is next at about $307 million, followed by KOLD at about $140 million, UNG at about $111 million and UNL at about $17 million. Together they hold about $1.17 billion. FCG is also the only one of the five that owns company shares rather than natural gas futures.
What is the cheapest natural gas ETF?
FCG has the lowest expense ratio of the group, at 0.59% a year. The expense ratio is the yearly fee taken out of fund assets. BOIL and KOLD charge 0.95%, UNG charges 1.01% and UNL charges 1.71%, the highest of the five. Cost is worth weighing alongside structure. FCG owns stocks, while UNG and UNL hold natural gas futures, so their results can differ sharply.
FCG vs BOIL: what's the difference?
They are built for very different jobs. FCG tracks the Nasdaq FactSet Natural Gas Index through 43 companies, such as Western Midstream Partners and EOG Resources, for 0.59% a year. BOIL is a leveraged commodity pool that seeks twice the daily move of a Bloomberg natural gas futures index, for 0.95%. Over the year to October 27, 2026, FCG gained 46.7% while BOIL lost 39.6%. BOIL's one-year volatility, a measure of price swings, was 95.2%, against 27.7% for FCG.
Do natural gas ETFs pay dividends?
Of the three funds that are not leveraged, only FCG pays dividends. Its yield was 2.04% as of October 27, 2026, funded by payouts from companies it owns, such as Western Midstream Partners and Hess Midstream. UNG and UNL hold natural gas futures, which pay no dividends. BOIL and KOLD are short-term trading tools rather than income funds.
Which natural gas ETF holds ConocoPhillips?
FCG does. ConocoPhillips made up 4.33% of the fund in its latest reported holdings, making it one of FCG's five largest positions. The others were Western Midstream Partners at 4.91%, Hess Midstream at 4.83%, EOG Resources at 4.5% and Diamondback Energy at 4.03%. UNG, UNL, BOIL and KOLD hold natural gas futures rather than company shares, so they give no stake in ConocoPhillips or any other producer.
How many natural gas ETFs are there?
There are five in the group tracked here, with about $1.17 billion in combined net assets. FCG, from First Trust, owns natural gas company stocks. UNG and UNL, from Marygold, are commodity pools: funds that hold futures contracts rather than shares. ProShares' BOIL and KOLD are leveraged commodity pools. KOLD is also inverse, meaning it aims to rise on days its gas index falls. UNG is the oldest, launched April 18, 2007.
Is there a leveraged natural gas ETF?
Yes, there are two. BOIL seeks twice (2x) the daily move of a Bloomberg natural gas futures index, and KOLD seeks twice the opposite (-2x). Because they reset each day, results over weeks or months can stray far from those multiples, especially when prices swing. Over the year to October 27, 2026, BOIL lost 39.6% and KOLD lost 8.8%, so both lost money despite opposite bets. KOLD's deepest drop within that year was 72.5%. They are short-term trading tools, not long-term holdings.
Is there a natural gas ETF without a K1?
FCG is the only one of the five set up as a standard stock ETF, so it generally reports to investors like an ordinary stock fund. The other four are commodity pools. UNG and UNL are limited partnerships. Commodity pools like them, including BOIL and KOLD, generally send investors a Schedule K1. That is a partnership tax form that often arrives later and can make filing more involved. Each fund's tax information gives the details.
Is there a Vanguard, Fidelity or Schwab natural gas ETF?
No. None of the three offers a natural gas ETF. The largest natural gas ETFs come from First Trust (FCG), Marygold (UNG) and Marygold (UNL), and customers of all three firms can buy other companies’ ETFs in their brokerage accounts. For a broader fund, VDE (Vanguard Energy ETF) and FENY (Fidelity MSCI Energy Index ETF) are covered in our energy ETF guide.
