In this piece, we will take a look at the ten worst performing commodity ETFs in 2023. If you want to find out what the fuss is all about in the commodities world, then check out 10 Worst Performing Commodity ETFs in 2023.
5. United States Oil Fund, LP (NYSE:USO)
5 Year Share Price Gains: -32.8%
United States Oil Fund, LP (NYSE:USO) is a crude oil futures fund with close to half of its holdings in different futures contracts ranging from September 2023 to January 2024. It is part of the USCF investments fund family and has sizeable net assets that are worth $1.32 billion. However, when compared to other crude oil ETFs which often track different oil varieties, the United States Oil Fund, LP (NYSE:USO) focuses its efforts on only tracking sweet U.S. crude oil.
4. United States Natural Gas Fund, LP (NYSE:UNG)
5 Year Share Price Gains: -70.69%
The United States Natural Gas Fund, LP (NYSE:UNG) is another USCF fund. As the name suggests, it tracks natural gas prices, and has net assets worth $1 billion. The ETF’s glory days appear to be behind it when it comes to net asset value; however, it does track its benchmark index and ends up delivering slightly higher returns. 2023 hasn’t been a great year for the fund either, since it is down 54% year to date in daily returns. A large chunk of its holdings are in a Henry Hub natural gas contract.
3. ProShares UltraShort Bloomberg Natural Gas (NYSE:KOLD)
5 Year Share Price Gains: -92.93%
ProShares UltraShort Bloomberg Natural Gas (NYSE:KOLD) is an inverse ETF that seeks to deliver twice the negative returns of a Bloomberg natural gas index. It has $103 million in net assets and has seen remarkable movements in its 52 week price range that stands between a near absolute low level of $9 to a high of $92.35. The fund is exposed to September 2023 natural gas futures and it was set up in 2011.
2. ProShares UltraShort Bloomberg Crude Oil (NYSE:SCO)
5 Year Share Price Gains: -94.41%
ProShares UltraShort Bloomberg Crude Oil (NYSE:SCO), like the previous ETF, is also an inverse fund. And, as its title suggests, the fund seeks to make a return when crude oil prices drop. So naturally, if you take a look at its share price movements since 2008 when the fund was initially set up, all the big peaks, which are often six to eight times greater in magnitude than the trough prices occur when the global economy is facing a crisis. The biggest peak came during the Great Recession of 2008 and the 2016 oil price crash which was the greatest drop in modern history up to that point.
1. ProShares Ultra Bloomberg Natural Gas (NYSE:BOIL)
5 Year Share Price Gains: -98.91%
ProShares Ultra Bloomberg Natural Gas (NYSE:BOIL) has $93 million in net assets and is part of the ProShares fund family. It is another type of fund that is called a ‘magnification’ fund which seeks to expand the gains of a benchmark index but with the risk of equally magnified losses.
Disclosure: None. You can also take a look at 12 Best NASDAQ ETFs and 10 Best Financial and Fintech ETFs To Buy.
