Thanks for all the responses. I have been feeling uneasy since I read the prospectus this afternoon. Having felt good about NG, I invested in UNG because I thought UNG prices fell more than, for example, CHK, relatively so thought they are better buy. Now I understand all the expenses and rollovers which dont make any sense. I would buy CHK instead. Lou Simpson bought 200K shares of CHK late last year.
Here is the bottom line:
1) NG goes down, UNG goes down more because of expenses. 2) NG stays flat, UNG goes down. 3) NG spikes, UNG goes up just a little bit.
Read webchow2000 post from Feb 1. It has a seeking alpha column which explains why this a bad way to invest in Natural Gas, the rollover, will kill you and don't forget their fees. This thing had a reverse split one year, the fund will continue the lose money for the longs.