There is much to say for buying the exchange traded funds of a sector such as United States Natural Gas (NYSE:UNG) and United States Oil (NYSE: USO).
Like stocks, exchange traded funds like United States Natural Gas and United States Oil do well when the sector does well. Exchange traded funds all offer more diversity. The securities are also managed by experienced professionals. There are also greater investment for the exchange traded funds, too.
As market action has show with United States Oil and United States Natural Gas, that leads a robust performance.
For 2014, United States Natural Gas is up more than 20 percent (chart below). It is up for the last month, quarter, six months, and year of market action. For United States Oil, it is much the same story.
Since the first of the year, United States Oil has risen more than 10 percent. It is up for the last week, month, quarter, six months, and year of trading. over the last 52 weeks, United States Oil has jumped over 16 percent.
The future is bullish for both United States Oil and United States Natural Gas.
Demand is increasing around the world. Much of that has to do with growth in China and India, the world’s two most populous nations. Economic growth is strong in both countries. India and China are also trying to use more natural gas. There are many advantages to natural gas as it is a cleaner fuel.
It has been a good year for United States Oil and United States Natural Gas.
Investors should expect more of the same in the future. Demand will increase for both natural gas and oil. Tensions around the world make each more appealing as an investment. As the double digit performance this year has shown, United States Natural Gas and United States Oil both have bullish futures.