Producers are having to pay companies to take the natural gas they are producing off their hands.
ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is rated a strong sell due to severe NAV erosion from daily compounding, contango, and high volatility. BOIL's structure leads to significant annual variance drag (~49%) and roll costs, causing it to underperform spot natural gas by over 15% annually. With current market conditions—seasonal contango, high storage, and rising production—BOIL requires a 25–30% rally in front-month futures just to break even over six months.
Natural gas prices surge amid Middle East conflict, pushing ETFs like UNG into focus as supply disruptions fuel a global energy crunch.
ProShares Ultra Bloomberg Natural Gas ( NYSEARCA:BOIL ) lost nearly 80% of its value over the past year, and traders keep coming back for more.
Top Performing Levered/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.
Leveraged ETFs tied to natural gas and short bets on quantum and miners surged last week amid Fed jitters and sector rotation.
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When a leveraged natural gas ETF drops 53% in a year, most investors flee. But that brutal decline in ProShares Trust II (NYSEARCA:BOIL) might set up a compelling contrarian play for 2026.
After a muted 2025, natural gas demand is projected to rebound in 2026, and these three ETFs offer diversified ways to position for the recovery.
Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.
ProShares Ultra Bloomberg Natural Gas ETF offers 2x daily exposure to natural gas futures, appealing to active traders seeking amplified volatility. BOIL is best used for short-term trades, due to significant risks, including value decay, compounding effects, and high volatility in natural gas prices. Long-term natural gas price support may come from increased domestic power plant demand and international trade agreements, but BOIL is not recommended for buy and hold.
BOIL aims to deliver 2x daily natural gas price movements but suffers from significant value decay over time due to fees and compounding. Long-term U.S. energy export trends are unlikely to benefit BOIL, as gains require an immediate, sharp rise in natural gas prices. BOIL is unsuitable for individual investors; its structure and price decay make it more appropriate for short-term institutional trading.