Natural-gas exchange-traded funds (ETFs) have quietly led the market so far this year, despite challenges posed by contango. Contango occurs when futures prices are higher than spot prices for a commodity, making it difficult for investors to buy and sell commodities efficiently.
Investors looking to tap into the natural-gas market may be considering ETFs as a way to gain exposure. However, they need to be aware of the challenges presented by contango.
For those who haven’t been following the developments in the natural-gas market, here’s what investors need to know:
* Contango can lead to reduced trading efficiency and increased costs for investors.
* Natural-gas ETFs have generally outperformed the broader market so far in 2025.
* Investors should carefully evaluate their investment goals, risk tolerance, and overall financial situation before investing in natural-gas ETFs.
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Source: https://www.marketwatch.com/story/natural-gas-etfs-have-quietly-outshined-the-broader-market-so-far-in-2025-is-it-time-to-jump-in-79f7a05a