Why should you trade a natural gas ETF short fund? You will find it is easier to trade a fund designed to be short the market than trying to do it yourself. If you want to short natural gas futures, you would need to open a futures trading account. If you wanted to short natural gas companies, you would need to go to your stock brokerage firm, set up a margin account, and hopefully be able to borrow the shares you want to short. By selecting the right short gas ETF, you can be short the market with the click of a button.

Here are a few short natural gas ETFs to choose from:

Horizons BetaPro NYMEX Natural Gas Bear Plus ETF (HND-TSX) 2x

ProShares Short Oil & Gas (NYSE-DDG)

ProShares UltraShort Oil & Gas (NYSE- DUG) 2x

ETFS Short Energy ETF (SNRG-LSE)

The Horizons BetaPro Natural Gas Bear Plus ETF is perhaps the purest short natural gas play there is. This fund is based on the nearby or front month natural gas futures contract traded on the New York Mercantile Exchange (NYMEX) This fund takes a short position in the front contract. Since each month the front contract will expire, this fund will need to switch the fund into the next contract month. Beginning with the 5^th business day of the month, the fund then begins to “roll” the contracts into the next contract month. This will take place over 8 days until the fund sells all its contracts in the expiring front month and buys contracts in the new front month. Another interesting aspect of this fund is that it is a leveraged fund. The Natural Gas Bear Plus ETF attempts to match twice (200%) of the daily price move. This fund is traded on the Toronto Stock Exchange and its ticker symbol is HND.

The ProShares family of fund offers 2 ETFs that invest in natural gas related companies. The ProShares Oil & Gas ETF (DDG) shorts stocks that make up the Dow Jones U.S. Oil & Gas Exploration & Production Index. The companies that are included in this fund are oil drilling equipment and service, pipelines, gas producers and service companies. Recent companies in this index (which is subject to change) are Exxon, Chevron, Apache and Halliburton. This energy ETF attempts to mimic the single day return (before fund expenses) of the under lying index.

If you want more bang for your buck, they offer the ProShares UltraShort Oil & Gas ETF (DUG). This fund is the same as the Short Oil & Gas ETF, but is leveraged to attempt to earn twice the return of the DDG ETF. Since you are trading a leveraged ETF your risk is twice as much, but the profits can be 2 times as large. You must access your risk before entering a leveraged fund.

Another short gas ETF to look at is the ETFS Short Energy ETF. This energy ETF shorts the natural gas market in addition to crude oil, unleaded gasoline and heating oil. The Short Energy ETF is based on the Dow Jones-UBS Energy Subindex. This fund invests in the previously mention crude oil gasoline and heating futures markets. This ETFs symbol is SNRG and is traded on the London Stock Exchange.

There you have a look at different ways you can be investing in short Natural Gas ETFs. If you feel prices are collapsing and going lower, then you should invest in Natural Gas ETF short funds.

Possibly Related Posts:

• Natural Gas Futures, How They Effect Natural Gas ETFs
• Natural Gas ETFs and the CFTC New Rules
• Wildcatters Exploration & Production Equity ETF Review
• Why you should trade the Natural Gas ETF over futures and index funds.
• Natural Gas ETF frequently asked questions (FAQ)