Suppose that natural gas prices are on the rise and you’d like to capitalize. Like most retail investors, exchange-traded funds (ETFs) are probably the first thing that comes to mind, as they’re a lot easier to buy than commodity contracts. So, you decide to purchase a natural gas ETF that holds natural gas futures contracts of its own, in order to capitalize on this bullish investment thesis over the coming three months [Download 101 ETF Lessons Every Financial Advisor Should Learn]. Now, imagine that natural gas prices rise by 10% over this period, and you’re ready to sell and book the profit. After logging into your brokerage account, you’re surprised to see that the natural gas position has actually declined 5% in value over the same time frame! In this article, we’ll explore why this occurred as well as some other risks that investors should consider when picking a commodity ETF to [...] Click here to read the original article on ETFdb.com. Related Posts: Ultimate Guide To United States Commodity Index Fund (USCI) Ten New Years’ Resolutions For ETF Investors 101 ETF Lessons Every Financial Advisor Should Learn When Bigger Isn’t Better: Profiling ETF Alternatives To DJP, FXI, GLD One Year Later: USCI Remains An Intriguing Commodity ETF