At a glance
UNL charges 1.71% a year, above the 0.84% average of the 7 funds most like it (the most expensive of 8). It has $17.4M in assets, the 8th largest of that group. Over the past year it returned −32.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned −22.0% a year. At its worst it fell 38.0% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
United States 12 Month Natural Gas Fund LP (UNL) is a commodity pool, a fund holding natural gas futures rather than gas itself, spread equally across 12 consecutive months. That averages a year of futures prices rather than one month's, and its sponsor presents it as a way to diversify or hedge gas-price risk. Its 1.71% expense ratio is roughly double the 0.84% average of similar commodity funds, and it has no recorded distributions.
Price history
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UNL -32.4% 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 | |
|---|---|---|---|---|---|---|
| UNL price data to Oct 27, 2026 | -27.6% | -32.4% | -22.0% | -18.7% | — | -5.8% |
- Over the year to Oct 27, 2026, UNL returned -32.4%, 8th of 8 among similar funds.
- Its 5-year annualized return was -18.7%.
- Its worst full calendar year was 2023 (-50.2%); its best was 2021 (+54.4%).
- The deepest fall in its price history was 81.2% (Jun 7, 2022 to Oct 23, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -27.6% |
| 2025 | -9.7% |
| 2024 | -4.8% |
| 2023 | -50.2% |
| 2022 | +47.0% |
| 2021 | +54.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 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 83.5% over that stretch · deepest drop along the way 38%, not recovered by the end of the data |
What's inside
The fund holds futures contracts and the cash and Treasury bills backing them, not the commodity itself; its net assets were $17.4M 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
UNL tracks no published index. Its general partner, United States Commodity Funds LLC, part of The Marygold Companies, aims to match daily percentage moves in the average price of 12 natural gas futures contracts (agreements locking in a later month's price) on the New York Mercantile Exchange, for gas delivered at Louisiana's Henry Hub. They are the nearest month and the next 11, weighted equally, shifting forward when the nearest is within two weeks of expiring.
Futures require only a deposit, called margin, so the fund backs its positions with interest-earning Treasuries maturing within two years, cash and cash equivalents. It may also use options, swaps, forwards or oil and fuel futures for regulatory, liquidity or pricing reasons. Its tracking goal is loose: average daily moves over any 30 straight trading days need only land within plus or minus 10% of the benchmark's.
Rolling expiring contracts into later ones drags on returns when later months cost more (contango) and helps when they cost less (backwardation), so over time UNL can drift far from the price of gas for immediate delivery. It is a commodity pool, not a registered investment company, so it lacks some fund protections. It is taxed as a partnership: holders get a Schedule K-1 and may owe tax on gains even without cashing out.
What it really costs
- UNL charges 1.71% a year, versus an average of 0.84% for the similar funds below (8th 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
Its 81.2% unrecovered drop from its 2022 peak, lack of income and 1.71% expense ratio point to, at most, a small higher-risk position beside core holdings.
Natural gas can move independently of stocks. During the 2022 bear market, UNL rose 83.5% from the stock market's January 3 peak to its October 12 trough. But it fell 38% between June 7 and July 5, 2022, lost 50.2% in 2023, its worst calendar year since 2021, and by October 23, 2026 sat 81.2% below its June 2022 high, unrecovered as of October 27, 2026. Its price record starts in June 2020, so the 2008 and 2020 crashes aren't covered.
For someone who may need to draw cash in a slump, that could mean cashing out near a deep low, with no guarantee of recovery. UNL pays no distributions, so it offers no income, and its 1.71% expense ratio is roughly double the 0.84% average of similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting natural gas exposure spread equally across 12 monthly futures contracts, rather than tied only to the nearest month.
- Investors wanting a small position that can move against stocks: it rose 83.5% between the stock market's 2022 peak and trough.
- Experienced investors who accept Schedule K-1 tax forms, annualized volatility near 35%, and roll effects that can pull returns away from gas prices.
Look elsewhere if
- Income seekers: UNL has no recorded distributions, so returns come only from futures prices and collateral interest, minus expenses.
- Cost-conscious investors: its 1.71% expense ratio is the highest of 8 similar commodity funds, versus a 0.84% average; UNG charges 1.01%.
- People who may need this money soon: UNL fell 81.2% from its June 2022 peak and had not recovered as of October 27, 2026.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| UNL this fund | 1.71% | $17.4M | -32.4% | -22.0% |
| USO United States Oil Fund LP | 0.7% | $1.10B | +124.1% | +27.9% |
| UNG United States Natural Gas Fund LP | 1.01% | $440.3M | -25.2% | -30.6% |
| 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% |
Questions investors ask
Does UNL pay dividends?
No. UNL has no recorded distributions, so it provides no income. It holds natural gas futures backed by Treasuries, cash and cash equivalents. Interest on that collateral goes into the fund's net asset value (its per-share value) instead of being paid out. Because UNL is taxed as a partnership, holders may still owe tax each year on their share of its gains. Those gains are reported on a Schedule K-1, even when holders receive no cash.
What's the difference between UNL and UNG?
Both are natural gas funds organized as limited partnerships, with United States Commodity Funds LLC as general partner, but UNL is smaller and costlier. UNL follows an equal-weighted average of 12 consecutive monthly futures contracts. It charges 1.71% versus UNG's 1.01%. It held about $17.4 million in assets as of June 30, 2026, against roughly $440.3 million for UNG. As of October 27, 2026, UNG lost 25.2% over one year versus UNL's 32.4%. Over three years, UNL lost less: 22% a year versus 30.6%.
Is UNL a good long-term investment?
Its long-term record has been weak. As of October 27, 2026, UNL had lost 18.7% a year over five years, or 65% in total, and 22% a year over three years. At its October 23, 2026 low, it was 81.2% below its June 2022 peak. It did rise 54.4% in 2021 and 47% in 2022. Rolling futures contracts can pull returns away from natural gas prices over time, and the 1.71% expense ratio adds drag. Past results don't predict future returns.
Why does UNL send a K-1 instead of a 1099?
UNL sends a K-1 because it is a Delaware limited partnership taxed as a partnership. It reports each holder's share of income, gains and losses on a Schedule K-1 rather than a Form 1099. Holders may owe tax on their share of the fund's gains each year, even if they never cash out shares and even though UNL pays no distributions. K-1 reporting can make tax filing more involved than with a typical ETF.
Does UNL track the price of natural gas?
Only loosely. UNL aims to match daily percentage changes in the average price of 12 consecutive monthly natural gas futures contracts on the New York Mercantile Exchange, plus interest on collateral, less expenses. It does not aim to match the price of gas for immediate delivery. The goal counts as met if average daily changes over 30 straight trading days stay within plus or minus 10% of the benchmark's. Over longer stretches, price gaps between expiring and later contracts (contango and backwardation) can pull returns far from gas prices.