Natural gas exchange-traded funds (ETFs) are a growing segment of the energy market, offering investors a way to tap into the natural gas sector without directly purchasing the commodity. These ETFs focus on tracking natural gas futures contracts, shares of companies involved in the production or distribution of natural gas, and other energy-related assets. As the global demand for natural gas rises and the sector becomes more integrated into global energy portfolios, natural gas ETFs are emerging as key investment vehicles.
In this article, we will explore the 9 largest natural gas ETFs in 2025, offering a detailed look at their structure, focus areas, and the opportunities they present to investors. These ETFs cater to both experienced energy investors and those seeking to enter the natural gas space without taking on the complexities of direct commodity investment. Each fund is designed to provide exposure to different facets of the natural gas market, making it crucial to understand their differences and advantages before investing.
The 9 Largest Natural Gas ETFs to Watch in 2025
1. United States Natural Gas Fund (UNG)
The United States Natural Gas Fund (UNG) is one of the largest and most well-known natural gas ETFs. This fund is designed to track the price of natural gas by holding natural gas futures contracts on the NYMEX. It offers investors a straightforward way to gain exposure to the natural gas market without needing to trade futures directly.
Fund Overview:
Focus: Primarily futures contracts.
Total Assets: $1.5 billion (2025 estimate).
Expense Ratio: 0.85%.
Investment Strategy: UNG invests in short-term natural gas futures to track the price movements of natural gas.
Risk Factor: The fund’s price can be highly volatile, reflecting the fluctuations of natural gas futures prices.
UNG is a favorite among traders who seek short-term exposure to natural gas prices. However, it is not ideal for long-term investors due to the potential for futures contracts to experience contango (when future contracts are more expensive than the current price), which can erode returns over time.
2. iShares Global Energy ETF (IXC)
The iShares Global Energy ETF (IXC) is a broader energy fund, but it provides substantial exposure to natural gas companies. The fund includes global companies involved in energy exploration and production, including significant natural gas players.
Fund Overview:
Focus: Energy sector, including natural gas companies.
Total Assets: $6.8 billion (2025 estimate).
Expense Ratio: 0.43%.
Investment Strategy: IXC tracks the performance of the S&P Global 1200 Energy Sector Index.
Top Holdings: ExxonMobil, Chevron, and Shell.
Unlike pure natural gas funds like UNG, IXC provides exposure to a wide array of energy companies, allowing for diversification within the sector. This ETF is ideal for investors looking to gain broad exposure to the energy markets, with a sizable portion of the fund invested in natural gas.
3. Invesco DB Natural Gas Fund (FCG)
The Invesco DB Natural Gas Fund (FCG) focuses on providing exposure to companies involved in natural gas exploration and production. It is heavily weighted in U.S.-based natural gas producers, giving it a more targeted exposure compared to broader energy ETFs.
Fund Overview:
Focus: Natural gas production companies.
Total Assets: $1.1 billion (2025 estimate).
Expense Ratio: 0.60%.
Investment Strategy: FCG tracks the performance of the DBIQ Natural Gas Index, which includes natural gas exploration companies.
Top Holdings: Devon Energy, Cabot Oil & Gas, and EQT Corporation.
FCG is a popular choice for investors looking for more specific exposure to natural gas companies that directly influence the supply and production of natural gas. It is well-suited for those with a higher risk tolerance, as the fortunes of the companies in this fund are closely tied to the volatility of natural gas prices.
4. First Trust Natural Gas ETF (FCG)
The First Trust Natural Gas ETF (FCG) offers another avenue for exposure to natural gas companies. Similar to the Invesco DB Natural Gas Fund, this ETF primarily invests in U.S.-based natural gas producers.
Fund Overview:
Focus: U.S. natural gas producers.
Total Assets: $700 million (2025 estimate).
Expense Ratio: 0.60%.
Investment Strategy: FCG tracks the performance of the First Trust Natural Gas Index.
Top Holdings: Chesapeake Energy, Antero Resources, and Range Resources.
This fund is also highly concentrated in natural gas extraction firms, providing direct exposure to the upstream side of the natural gas sector. It is an ideal option for those who believe in the long-term growth prospects of natural gas production in the U.S.
5. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
Although primarily focused on oil and gas exploration, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) includes several companies heavily involved in natural gas extraction.
Fund Overview:
Focus: Oil and gas exploration, with significant exposure to natural gas companies.
Total Assets: $2.9 billion (2025 estimate).
Expense Ratio: 0.35%.
Investment Strategy: XOP tracks the S&P Oil & Gas Exploration & Production Select Industry Index.
Top Holdings: EOG Resources, ConocoPhillips, and Pioneer Natural Resources.
XOP offers investors exposure to a broader group of energy producers but retains a significant amount of exposure to companies that are vital players in the natural gas market. It’s perfect for those who want to diversify within the energy sector but still maintain an emphasis on natural gas.
6. VanEck Vectors Natural Gas ETF (GASX)
The VanEck Vectors Natural Gas ETF (GASX) focuses specifically on natural gas futures and related industries, providing a more targeted approach compared to the broader energy ETFs.
Fund Overview:
Focus: Natural gas futures and energy companies.
Total Assets: $300 million (2025 estimate).
Expense Ratio: 0.60%.
Investment Strategy: GASX tracks the performance of the MVIS Global Natural Gas Index, a basket of global natural gas companies and energy contracts.
Top Holdings: Cheniere Energy, LNG, and TotalEnergies.
GASX offers investors a blend of direct commodity exposure and investment in natural gas-related companies, which provides a balanced approach to capturing natural gas market movements.
7. ProShares Ultra Bloomberg Natural Gas (BOIL)
ProShares Ultra Bloomberg Natural Gas (BOIL) is a leveraged ETF that aims to double the daily return of natural gas futures. This fund is designed for traders looking to amplify short-term movements in natural gas prices.
Fund Overview:
Focus: Leveraged exposure to natural gas futures.
Total Assets: $900 million (2025 estimate).
Expense Ratio: 0.95%.
Investment Strategy: BOIL uses leverage to amplify the daily returns of natural gas futures.
Risk Level: High-risk, high-reward due to its leveraged nature.
Due to its leveraged structure, BOIL is suited for short-term traders looking to capitalize on natural gas price swings. It’s not suitable for long-term investors because of the risks associated with the leverage.
8. Direxion Daily Natural Gas Related Bull 3x Shares (GASL)
Direxion Daily Natural Gas Related Bull 3x Shares (GASL) is another leveraged ETF, but this one focuses on natural gas-related equities. It aims to triple the daily return of companies involved in natural gas production.
Fund Overview:
Focus: Leveraged exposure to natural gas companies.
Total Assets: $550 million (2025 estimate).
Expense Ratio: 0.95%.
Investment Strategy: GASL uses 3x leverage to track the performance of natural gas-related stocks.
Risk Level: Very high risk due to triple leverage.
Similar to BOIL, GASL is designed for traders seeking to profit from daily volatility, making it unsuitable for conservative investors or those looking for long-term growth.
9. Global X MSCI China Energy ETF (CHIE)
The Global X MSCI China Energy ETF (CHIE) focuses on Chinese companies within the energy sector, including those involved in natural gas exploration and distribution.
Fund Overview:
Focus: Chinese energy companies, with exposure to natural gas.
Total Assets: $500 million (2025 estimate).
Expense Ratio: 0.65%.
Investment Strategy: CHIE tracks the performance of the MSCI China Energy Index.
Top Holdings: PetroChina, Sinopec, and China National Offshore Oil Corporation.
For investors seeking exposure to the global natural gas market, CHIE offers indirect exposure through China’s major energy players, which include significant natural gas stakeholders.
Conclusion
Natural gas ETFs are becoming increasingly important as part of a diversified energy portfolio, offering both traders and long-term investors a range of options to tap into the natural gas sector. From pure-play commodity ETFs like UNG to diversified energy funds like IXC, there are many choices for investors to explore.
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