3 ETFs Poised to Win in Tomorrow's Market
Exchange-traded funds (ETFs) have found their way solidly into this Fool's personal portfolio. These funds trade just like stocks but represent a basket of bonds, stocks, or currencies just like a mutual fund. Since ETFs have become popular, many new ETFs have been launched; this makes choosing the best ones really confusing. What's a Fool to do?
United States Natural Gas Fund
The natural gas market has been highly volatile lately. We can likely expect the fluctuations to even out into some serious growth over the next ten years. Why? January data shows record withdrawals from natural gas stores, which will invoke the laws of supply and demand on pricing, and in doing so will establish new usage patterns. Natural gas industrial consumption is tracking power sector consumption in today's market, and by 2040, will be higher than power generation's consumption. Driving this growth is natural gas' new image as a clean, plentiful energy source, and the hard winter we have had so far. The typical natural gas stocks fluctuate quite a bit, and it is hard to pick the winning "horse." This makes going with a fund like the United States Natural Gas Fund a really good idea.
The fund finished 17.9% higher last week and is at the highest level in two years. It appears to be going through a breakthrough at present. Obviously, the weather will warm up and the fund's price will reflect it, which could be a great time to buy.
Taking a look at the long-term outlook for natural gas, you can see the expected market behavior: