Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the ProShares UltraShort DJ-UBS Natural Gas has received the dreaded one-star ranking.

With that in mind, let's take a closer look at KOLD, and see what CAPS investors are saying about the ETF right now.

KOLD facts

  

Inception

October 2011

Total Net Assets

$32.1 million

Investment Approach

Seeks to replicate the inverse of the performance of the Dow Jones-UBS Natural Gas Subindex for a single day. The index reflects the performance of a rolling position in natural gas futures contracts traded on the NYMEX without regard to income earned on cash positions.

Expense Ratio

1.1%

3-Month / Year-to-Date / 1-Year Returns

(38.1%) / (32.2%) / (67.6%)

Alternatives

United States Short Oil 

PowerShares DB Commodity Short ETN 


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 75 members who have rated KOLD believe the ETF will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TerryHogan, succinctly summed up the KOLD bear case for our community:

Definitely not a NatGas bull with all the shale capacity in North America coming online, and the liquefied from Australia hitting the world market over the next few years. Having said that, it can't go that much lower, because producers just won't supply it in volume. So even if the price of NatGas just goes sideways, this leveraged ETF will underperform in the long run.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why KOLD Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Professional Vs Do it Yourself Investing

Should you get advice or DYI?

View Course »

Add a Comment

*0 / 3000 Character Maximum