How to Invest in ProShares UltraShort Bloomberg Natural Gas ETF (KOLD)

What is the ProShares UltraShort Bloomberg Natural Gas ETF?

How to buy ProShares UltraShort Bloomberg Natural Gas ETF

Buying shares of the ProShares UltraShort Bloomberg Natural Gas ETF is fast and easy. Here's what you need to do.

• Step 1: Open your brokerage app: Log into your brokerage account where you handle your investments.
• Step 2: Search for the ETF: Enter the ticker (CHAT) or ETF name into the search bar to bring up the ETF's trading page.
• Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
• Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
• Step 5: Submit your order: Confirm the details and submit your buy order.
• Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Holdings of ProShares UltraShort Bloomberg Natural Gas ETF

The ProShares UltraShort Bloomberg Natural Gas ETF invests in natural gas futures contracts, just like its underlying index, the Bloomberg Natural Gas Subindex. The ETF seeks to achieve daily investment results that correspond to two times the inverse (-2x) of the daily performance of the Bloomberg Natural Gas Subindex. The fund may also invest in swaps in certain circumstances.

In early 2025, the Bloomberg Natural Gas Subindex held 100% natural gas futures expiring in May 2025. Likewise, the ProShares UltraShort Bloomberg Natural Gas ETF invests primarily in natural gas futures contracts, which are agreements to buy or sell natural gas at a future date and price. The ETF had a -199.95% exposure weight to natural gas futures with an expiration date of July 2025. The ETF’s net assets total $524.5 million.

Should I invest in ProShares UltraShort Bloomberg Natural Gas ETF?

Investing in the ProShares UltraShort Bloomberg Natural Gas ETF will depend on your personal risk tolerance level and investment goals. There are numerous factors to consider. The ProShares UltraShort Bloomberg Natural Gas ETF is both leveraged and inverse because it seeks to achieve daily investment results that correspond to two times the inverse (-2x) of the daily performance of the Bloomberg Natural Gas Subindex. This means it aims to provide the opposite (inverse) of the daily performance of natural gas futures contracts, amplified by a factor of two (leveraged).

Because ProShares UltraShort Bloomberg Natural Gas ETF aims to replicate the inverse performance of the Bloomberg Natural Gas Sub-Index, it will move in the opposite direction and at twice the magnitude of the index's daily fluctuations. As a leveraged ETF, it uses financial instruments (like futures contracts) to amplify its exposure to the natural gas market. This can result in potentially higher gains or losses compared to a non-leveraged ETF. This ETF is designed to be used as a tactical trading tool and is not intended to be held for extended periods. Its returns are designed to be based on a daily performance rather than a longer-term view.

The ETF's structure means that it is highly susceptible to market volatility and can experience significant price swings. The "UltraShort" designation indicates that the ETF's performance is designed to be the inverse of the natural gas market. This means it will benefit if the price of natural gas falls and be hurt if it rises. For investors focused more on short-term gains who are experienced in futures trading and have a strong risk appetite, the ProShares UltraShort Bloomberg Natural Gas ETF may be an ETF to consider. However, for long-term investors focused on a buy-and-hold strategy, this ETF is likely not a suitable choice.

Does ProShares UltraShort Bloomberg Natural Gas ETF pay a dividend?

ProShares UltraShort Bloomberg Natural Gas does not currently pay a dividend. It's designed to track the negative daily performance of the Bloomberg Natural Gas Subindex, not to distribute dividends.

What is ProShares UltraShort Bloomberg Natural Gas ETF’s expense ratio?

This ProShares ETF has an expense ratio of about 0.95%, on the higher end of expense ratios. A $10,000 investment in this ETF would incur an annual fee of approximately $95.

Historical performance of ProShares UltraShort Bloomberg Natural Gas ETF

The ProShares UltraShort Bloomberg Natural Gas ETF (KOLD) seeks to provide two times the negative (or inverse) of the daily performance of the natural gas index. This means that if the natural gas index decreases by 1%, its price is expected to increase by 2% (before fees and expenses). Let’s see how the fund has delivered on that objective through the years since its inception in 2011.

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