U.S. equity markets kicked off the week with a strong performance, as investors were apparently encouraged by a commitment to low interest rates from Ben Bernanke and willing to overlook a big loss from GM, a critical audit of the New York Fed, and difficulties in easing relations with China. The ETFdb 60 Index, a benchmark of the universe of investable assets available through ETFs, gained 13.06 points, or 1.3%, to close at 1,027.52. Only five components of the Index finished the day in the red, as almost all asset classes delivered a strong performance to kick off the week.
The United States Natural Gas Fund (UNG) added 3.8% for the day, as futures gained following hopes that a sustained economic recovery would boost demand for both natural gas and crude oil. In addition to industrial demand, natural gas prices also responded to forecasts for below-average temperatures throughout most of the U.S. in coming weeks. UNG closed at $9.40 on Monday, reflecting a 3.3% premium to its NAV.
Natural gas traded in lock step with crude oil on Monday, a normally strong relationship that has weakened in recent months. The United States Oil Fund (USO) gained nearly 3% for the session. ETFdb Pro members can read more about drivers of Oil & Gas ETFs in our ETFdb Category Report (if you’re not a Pro member yet, you can sign up for a free trial or read more here).
The iPath DJ-UBS Copper Total Return ETN (JJC) was the biggest gainer in the Index on Monday, adding 4.6% as copper prices rallied to a 13-month high on a weaker dollar, increasing concerns over supply, and growing confidence in a sustained economic recovery.
Disclosure: No positions at time of writing.