Hydraulic fracking, a relatively new process for drilling natural gas, has made the United States awash in natural gas. But demand hasn't kept up with the seemingly endless new domestic supplies.
Natural gas prices of $2.50 per BTU (British Thermal Unit) are roughly half of where they were last year.
Natural gas ETFs track futures prices so they wind up buying higher priced contracts, only to sell them at the end of each month at a loss since spot, or daily, prices tend to be lower.
The unusually hot summer in the U.S. has pushed up natural gas prices somewhat as the heat has increased demand. Longer-term, some analysts see prices moving even higher as U.S. consumers start looking at natural gas as an alternative energy source.
Despite the ups and downs in the broader market, these ETFs are still enjoying double-digit gains this year.
