A month is a long time in politics, economics and the markets. The last four weeks have been particularly eye-opening with the threat of war in the Middle East, an American assault on Venezuela, uncertainty over interest rates and continued fears over an AI bubble. Oh, and hasn’t it been rather cold and wet?
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Commodities are caught up in all of this action and reaction, both equities and ETFs. So, what have been the best-performing commodity-linked ETFs over that period?
Let’s look at the United States Natural Gas Fund ETF (UNG) and the SPDR Gold Shares ETF (GLD).
UNG
The UNG is a specialized exchange-traded fund (ETF) that provides investors with a targeted opportunity to gain exposure to the natural gas sector, specifically focusing on the front month futures contracts. As a member of the Energy category, UNG stands out by concentrating on the dynamic and volatile niche of natural gas markets, appealing to investors seeking to capitalize on short-term price movements and trends driven by seasonal demand fluctuations, geopolitical developments, and changes in supply dynamics. It tracks the Front Month Natural Gas Index.
It has Assets Under Management of $387.57 million and an expense ratio of 1.24%.
Over the last month, it has posted a 17.02% return – see our Best Commodities ETF tool below: It has been helped by rising natural gas prices this year as a result of cold weather in the U.S., export demand from overseas and low storage levels.
GLD
The SPDR Gold Shares ETF offers investors a direct and efficient way to access the gold market. As a cornerstone in the category of Precious Metals, GLD is distinctly focused on gold, allowing investors to tap into the allure and historical significance of this timeless asset. It tracks the LBMA Gold Price PM Index ($/ozt).
It has Assets Under Management of $174.86 billion and an expense ratio of 0.40%.
Over the last month, it has posted a 12.68% return as investors seeking a safe haven for their cash kept gold prices surging.
If you want to take a broader look at the world of ETFs then make use of our TipRanks ETFs comparison tool.