The United States 12 Month Natural Gas Fund® LP (UNL) is an exchange-traded security that is designed to track the price movements of natural gas. UNL issues shares that may be purchased and sold on the NYSE Arca.
The investment objective of UNL is for the daily changes in percentage terms of its shares NAV to reflect the daily changes in percentage terms of the price of natural gas delivered at the Henry Hub Louisiana, as measured by the daily changes in the average of the prices of UNL's Benchmark Futures Contracts, less UNL's expenses.
UNL's Benchmark is the near month futures contract to expire and the contracts for the following 11 months, for a total of 12 consecutive months. If the near month futures contract is within two weeks of expiration, the Benchmark will be the next month contract to expire and the contracts for following 11 consecutive months. When calculating the daily movement of the average price of the 12 contracts, each contract month is equally weighted. The natural gas contract is natural gas delivered at the Henry Hub, Louisiana, and is traded on the NYMEX.
UNL invests primarily in listed natural gas futures contracts and other natural gas related futures contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.
UNL's Fund Benefits
- UNL offers commodity exposure without using a commodity futures account.
- UNL provides "equity-like" features including, intra-day pricing, and market, limit, and stop orders.
- UNL provides portfolio holdings, market price, NAV and TNA on its website each day.
|Intraday Indicative Value||UNL.IV|
|Minimum Trade||1 share|
|Total Expense Ratio1||0.90%|
|Administrator||Brown Brothers Harriman & Co.|
|Distributor||ALPS Distributors, Inc.|
|General Partner||United States Commodity Funds, LLC|
1 USCF has voluntarily agreed to pay certain expenses typically paid by UNL that exceeds 0.15% of NAV on an annualized basis. USCF may discontinue this arrangement at any time, which could negatively impact an investment in UNL. If this agreement were terminated, the Annual Fund operating Expenses could increase, which would negatively impact your total return from an investment in UNL.
The General Partner has agreed to waive fees and reimburse expenses of the Fund limiting Total Annual Operating Expenses to 0.90% of the Fund's average net assets.
The Fund's NAV is calculated by dividing the value of the Fund's total assets less total liabilities by the number of shares outstanding. Share price returns are based on closing prices for the Fund and do not represent the returns an investor would receive if shares were traded at other times.
† UNL commenced operations on 11/18/2009
Growth of $10,000 Investment
This chart shows how a hypothetical investment of $10,000 in the Fund at its inception would have performed versus an investment in the Fund’s benchmark futures contract(s). The values indicate what $10,000 would have grown to over the time period indicated. The hypothetical example does not represent the returns of any particular investment.
Average Daily Returns
Premium / Discount
The above frequency distribution chart presents information about the difference between the daily market price for shares of the Fund and the Fund's reported net asset value. The amount that the fund's market price is above the reported NAV is called the premium. The amount that the fund's market price is below the reported NAV is called the discount. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 pm Eastern time). The horizontal axis of the chart shows the premium or discount expressed in basis points. The vertical axis indicates the number of trading days in the period covered by the chart. Each bar in the chart shows the number of trading days in which the Fund traded within the premium/discount range indicated.
* A basis point is equal to 1/100th of 1% and is used to denote the change in a financial instrument.
Creation & Redemption Process
- Creation/redemption basket size: 50,000 shares
- Transaction charge for each Authorized Purchasers order is $350 (per order, not per basket)
- Order cut-off for APs is 12:00 pm ET
- UNL's NAV is calculated generally around 4:00 pm ET
- Settlement is T+3
- Custodian is Brown Brothers Harriman & Co.
- Marketing Agent is ALPS Distributors, Inc.