This is a leveraged ETF designed to track twice the daily return of a natural gas futures index. It uses derivatives to reflect short-term moves in natural gas prices at an amplified scale, and its exposure is reset on a daily basis.

It suits active traders who want to place leveraged bets on the short-term direction of natural gas and investors willing to accept very high risk.

It is a passive (index-tracking) ETF managed by ProShares.

The fund builds its exposure with derivatives to track twice the daily return of a natural gas futures index, and it resets its leveraged exposure every day. Because of the daily reset and futures roll costs, cumulative returns can differ significantly from simply twice the change in natural gas prices when volatile markets persist.

• 2x daily leverage on natural gas futures
• Leverage structure that resets every day

Assets under management (AUM) are $430.0M, and the expense ratio is 0.95% per year.

Compared with UNG, a natural gas ETF that invests in natural gas without leverage, the main points of comparison are the leverage multiple and volatility.

Leveraged natural gas products amplify price moves, so they generally deliver large gains in rising markets and large losses in falling ones. Natural gas is sensitive to weather, inventories, and supply and demand, and its volatility is extreme, so the leverage effect is also very pronounced.

Fund flows into leveraged commodity products diverge sharply depending on demand for short-term directional bets, and short-term trading money sometimes flows in when natural gas prices swing abruptly. It is also worth noting that performance can vary widely depending on natural gas prices, volatility, and futures roll costs.

The potential for short-term leveraged gains is both its strength and its risk, and the daily reset, roll costs, and natural gas's extreme volatility are key considerations.

To invest in natural gas without leverage, direct substitutes include UNG, and to bet on a decline in natural gas, inverse products such as KOLD are also worth comparing. For crude oil exposure, products such as BNO can also be considered. The three products shown in the table, UCO, AGQ, and UGL, track crude oil, silver, and gold with leverage respectively, so their underlying assets differ. What sets this ETF apart is its leveraged structure tracking natural gas futures at twice the daily return.

Here are the points to review before investing in BOIL. Short-term leveraged gains are attractive, but amplified losses, compounding and roll costs, and extreme volatility need to be checked in advance. It is best to approach it only after fully understanding the leveraged and commodity structure.

When natural gas prices fall, amplified losses and the daily reset and roll costs are the main variables for performance, and because natural gas is sensitive to weather and supply and demand, volatility is extreme. Leveraged commodity products are not suitable for long-term holding, and the risk of losing principal is very high.

It is a candidate suited to risk-tolerant traders who want to place leveraged bets on the short-term direction of natural gas. For investing without leverage, consider a product such as UNG, and for a short-term leveraged bet, it is advisable to choose this product only after fully understanding its structure.