Natural Gas ETF Slumps 80% Year over Year, Sheds 99.9% in 10 Years
ProShares Ultra Bloomberg Natural Gas ETF has plunged 80% over the past year and lost 99.9% of its value over the past decade due to daily 2× leverage compounding decay. Following US strikes on Iran in early March, the fund’s amplified exposure to Henry Hub volatility may attract short‐term traders.
1. Performance Plunge
ProShares Ultra Bloomberg Natural Gas ETF has declined about 80% over the past year and roughly 99.9% since inception in October 2011, reflecting extreme volatility in Henry Hub spot prices and extended periods of sideways movement that erode leveraged returns.
2. Macro Volatility Drivers
In January 2026, Henry Hub spot prices spiked to $30.72/MMBtu on January 23 driven by winter heating demand and supply constraints before falling to $3.13/MMBtu by February 23, illustrating the fund’s sensitivity to sudden swings in natural gas markets.
3. Daily Compounding Decay
BOIL’s 2× leverage target resets daily, causing beta slippage in volatile or flat markets and compounding losses over time; contango in the natural gas futures curve further accelerates decay during contract rollovers.
4. Short-Term Speculation
Following US strikes on Iran in early March, elevated geopolitical risks may prompt traders to use BOIL to capitalize on near-term natural gas price moves, though structural decay remains a significant obstacle for buy-and-hold positions.