KOLD Overview

ETF Outflow Details: The ProShares UltraShort Bloomberg Natural Gas ETF experienced the largest outflow, losing 3.6 million units, which is a 33.7% decrease in outstanding units compared to the previous week.

Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.

EU's Plan to End Russian Gas Imports: The European Union will announce a strategy on Tuesday to prohibit new Russian gas agreements by the end of 2025 and gradually terminate existing contracts by the end of 2027, aiming to eliminate imports of Russian fossil fuels.

Decline in Russian Gas Share: Russia's share of EU pipeline gas imports has significantly decreased from over 40% in 2021 to about 11% in 2024, with total Russian gas imports accounting for less than 19% of the EU's total gas imports in 2024.

Impact of the Winter Storm: A rare winter storm, named Enzo, is affecting the Gulf Coast with unprecedented snowfall, leading to thousands of flight cancellations, highway closures, and at least nine reported fatalities. The National Weather Service has issued blizzard warnings in several areas, marking the first such alerts for the region.

Record Snowfall and Power Issues: Historic snowfall records were broken in cities like New Orleans and Milton, Florida, while power outages occurred across multiple states. The storm has significantly increased power demand and prices, particularly for natural gas, as utility companies prepare for ongoing impacts.

KOLD ETF Performance: Shares of ProShares UltraShort Bloomberg Natural Gas (KOLD) rose 12.4% to $47.36 as U.S. natural gas prices fell over 7% due to lower-than-expected inventory withdrawals and milder weather forecasts reducing demand expectations.

Market Caution: While KOLD benefits from declining natural gas prices, investors are advised to be cautious due to the ETF's leveraged nature, which can amplify market volatility and risks.

Wall Street Performance: Last week, major U.S. stock indices experienced declines due to uncertainties surrounding the presidential election, mixed tech earnings, and disappointing job growth, with the economy adding only 12,000 jobs in October.

Top Performing ETFs: Several leveraged ETFs saw significant gains, including ProShares UltraShort Bloomberg Natural Gas (KOLD) up 26.7%, GraniteShares 2x Short TSLA Daily ETF (TSDD) up 16.8%, and MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD) up 12.3%, driven by factors such as falling natural gas prices and disappointing earnings from Tesla and AMD.

Natural Gas Stocks Update: As of the week ending October 18, natural gas stocks increased to 3,785 Bcf from 3,705 Bcf the previous week, showing a net change of +80 Bcf.

Comparison with Estimates: The increase of 80 Bcf exceeded the consensus estimate of +61 Bcf for the same period.