At a glance
UNG charges 1.01% a year, above the 0.8% average of the 7 funds most like it (the 7th cheapest of 8). It has $111.4M in assets, the 4th largest of that group. Over the past year it returned −25.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned −30.6% a year. At its worst it fell 41.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month after the low.
The short version
United States Natural Gas Fund LP (UNG) is a commodity pool. It holds natural gas futures contracts, not natural gas itself, and aims to track the daily price moves of a benchmark natural gas futures contract. Two things set it apart from similar funds: its 1.01% expense ratio is above the 0.80% peer average, and its price fell 88% over the five years to October 27, 2026.
Price history
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UNG -25.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| UNG price data to Oct 27, 2026 | -21.4% | -25.2% | -30.6% | -34.8% | — | -21.1% |
- Over the year to Oct 27, 2026, UNG returned -25.2%, 8th of 8 among similar funds.
- Its 5-year annualized return was -34.8%.
- Its worst full calendar year was 2023 (-64.0%); its best was 2021 (+35.8%).
- The deepest fall in its price history was 92.9% (Aug 22, 2022 to Oct 26, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -21.4% |
| 2025 | -27.1% |
| 2024 | -17.1% |
| 2023 | -64.0% |
| 2022 | +12.9% |
| 2021 | +35.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 73.1% over that stretch · deepest drop along the way 41.2%, back to its old high 1.4 months after the low |
What's inside
The fund holds futures contracts and the cash and Treasury bills backing them, not the commodity itself; its net assets were $111.4M as of Jun 30, 2026 (per its 10-Q). As a commodity pool it files 10-Q and 10-K reports instead of N-PORT holdings reports, so there is no holdings list.
How it works
UNG is not actively managed. Its goal is for the average daily percentage change in its net asset value (NAV, the per-share value of what it owns) over any 30 straight valuation days to land within plus or minus 10% of the average daily change in the price of its Benchmark Futures Contract. It mainly holds natural gas futures. It may also use other natural gas-related investments, such as over-the-counter swaps, usually with major global financial institutions.
Futures expire, so every month UNG closes out its positions and buys the next Benchmark Futures Contract. This is called rolling. The price gap between the old and new contracts can add to returns or take away from them, so over time the fund can drift far from the spot price of gas. UNG holds Treasuries, cash and cash equivalents worth about as much as its futures obligations. It does not borrow, and it is not leveraged. It could still become leveraged if it ran short of assets to meet margin calls.
Only large firms called Authorized Participants create or redeem shares, in blocks. Everyone else trades on NYSE Arca, sometimes at a premium or discount to NAV. UNG is taxed as a partnership, so holders get a Schedule K-1 and owe tax on their share of its gains each year, even if they don't sell.
What it really costs
- UNG charges 1.01% a year, versus an average of 0.8% for the similar funds below (7th of 8, cheapest first).
Structure and tax notes
- A commodity pool: it holds futures contracts (and the cash and Treasury bills backing them), not the commodity itself, and it is not a 1940 Act investment company, so it lacks some fund-specific investor protections. It is taxed as a partnership: investors get a Schedule K-1 rather than a 1099 and owe tax on their share of its gains each year, even without selling. Expiring contracts must be rolled into later ones, and the price gap between them adds to or takes from returns, so over time it can drift well away from the spot price of what it tracks. Besides the sponsor's fee, it pays brokerage commissions and other costs.
In a retirement portfolio
UNG follows natural gas futures that it rolls each month, pays no income, and lost 92.9% from its August 2022 peak without recovering by October 26, 2026.
UNG gives a portfolio concentrated exposure to natural gas futures, which have often moved apart from stocks. Its one-year beta, a measure of how a fund moves with the stock market, was -0.68 as of October 27, 2026. During the 2022 bear market it rose 73.1% while stocks fell. Even so, it dropped 41.2% between June 6 and July 5, 2022, and took until August 16 to recover. Its price history starts June 2, 2020, so the 2008 and 2020 crashes aren't covered. Its worst calendar year was 2023, at -64%. From August 22, 2022 to October 26, 2026, it fell 92.9%. Anyone forced to sell in a bad stretch could lock in deep losses. It pays no distributions and charges 1.01% a year. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders wanting short-term exposure to natural gas futures prices who can handle one-year volatility of 59% as of October 27, 2026.
- Investors looking for a position that has moved against stocks, as when UNG rose 73.1% during the 2022 bear market.
- Holders comfortable filing a Schedule K-1 and owing tax on their share of the fund's gains each year, even without selling.
Look elsewhere if
- Retirees seeking income: UNG has recorded no distributions, so it provides no cash flow to spend.
- Buy-and-hold investors: UNG lost 88% over the five years to October 27, 2026, and monthly futures rolls can pull it away from gas prices.
- Cost-conscious investors: its 1.01% expense ratio ranked 7th of 8 among similar funds, whose average was 0.80%.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| UNG this fund | 1.01% | $111.4M | -25.2% | -30.6% |
| USO United States Oil Fund LP | 0.7% | $1.10B | +124.1% | +27.9% |
| FCG First Trust Natural Gas ETF | 0.6% | $397.2M | +46.7% | +10.6% |
| DBO Invesco DB Oil Fund | 0.75% | $197.5M | +104.3% | +18.9% |
| BNO United States Brent Oil Fund LP | 0.94% | $98.1M | +134.6% | +30.4% |
| UGA United States Gasoline Fund LP | 1.17% | $90.0M | +118.7% | +29.3% |
| OILK ProShares K-1 Free Crude Oil ETF of Benef I… | 0.69% | $68.0M | +85.0% | +17.9% |
| DBE Invesco DB Energy Fund | 0.75% | $54.6M | +117.4% | +25.7% |
Questions investors ask
Is UNG a good long-term investment?
UNG's long-term record has been very weak. As of October 27, 2026, its price was down 34.8% a year over five years, an 88% total loss. It lost money in every calendar year from 2023 through 2025, and it fell 92.9% from its August 2022 peak without recovering. Because it rolls futures contracts every month, its returns can drift well away from the price of natural gas over long periods.
Does UNG pay dividends?
No. UNG has recorded no distributions, so it provides no income. It is taxed as a partnership, which means holders get a Schedule K-1 instead of a 1099. They owe tax on their share of the fund's gains each year, even if they never sell and receive no cash. That can make taxes more complicated than with a typical stock or bond ETF.
Does UNG track the price of natural gas?
Not directly. UNG holds natural gas futures contracts, not physical gas. Its goal is for its average daily NAV change over any 30 straight valuation days to land within plus or minus 10% of the average daily change in its Benchmark Futures Contract. Each month it swaps expiring contracts for later ones, and the price gaps between them can push its returns far from the spot price of gas.
What's the difference between UNG and FCG?
Both are natural gas funds, but cost and results differ widely. First Trust Natural Gas ETF (FCG) charges 0.60%, compared with UNG's 1.01%. To October 27, 2026, FCG returned 46.7% over one year, while UNG lost 25.2%. Over three years, FCG returned 10.6% a year and UNG lost 30.6% a year. UNG is a commodity pool that holds futures. FCG's prospectus shows how it gets its exposure, which is worth checking before treating the two as substitutes.
Is UNG a leveraged ETF?
No. UNG does not borrow money or use debt to meet its margin obligations, and it does not plan to leverage its assets. It holds Treasuries, cash and cash equivalents worth about as much as its futures positions. According to its annual report, it could still become leveraged if it ever held too few assets to meet current and future margin or collateral requirements.