UNG vs. LNG

Last updated Jun 3, 2026

UNG (United States Natural Gas Fund LP) is Oil & Gas fund tracking the Front Month Natural Gas, while LNG (Cheniere Energy, Inc.) is a stock. Over the past 10 years, UNG returned -20.65%/yr vs 22.19%/yr for LNG. At a 0.12 correlation, their price movements are largely independent.

Performance

UNG vs. LNG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in United States Natural Gas Fund LP (UNG) and Cheniere Energy, Inc. (LNG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, UNG achieves a -6.44% return, which is significantly lower than LNG's 22.01% return. Over the past 10 years, UNG has underperformed LNG with an annualized return of -20.65%, while LNG has yielded a comparatively higher 22.19% annualized return.

UNG

• 1D: -0.61%
• 1M: 7.10%
• YTD: -6.44%
• 6M: -23.33%
• 1Y: -32.01%
• 3Y*: -21.73%
• 5Y*: -23.24%
• 10Y*: -20.65%

LNG

• 1D: 3.57%
• 1M: -12.41%
• YTD: 22.01%
• 6M: 13.33%
• 1Y: -2.02%
• 3Y*: 18.58%
• 5Y*: 23.20%
• 10Y*: 22.19%

*Multi-year figures are annualized to reflect compound growth (CAGR)

UNG vs. LNG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
UNG United States Natural Gas Fund LP	-6.44%	-27.07%	-17.11%	-64.04%	12.89%	35.76%	-45.43%	-31.77%	5.96%	-37.58%
LNG Cheniere Energy, Inc.	22.01%	-8.70%	27.18%	15.02%	49.30%	69.48%	-1.70%	3.18%	9.94%	29.95%

Correlation

The correlation between UNG and LNG is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.18
Correlation (10Y) Calculated over the trailing 10-year period	0.13
Correlation (All Time) Calculated using the full available price history since Apr 19, 2007	0.12

Return for Risk

UNG vs. LNG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

UNG

UNG Risk / Return Rank: 4
UNG Sharpe Ratio Rank: 4
UNG Sortino Ratio Rank: 5
UNG Omega Ratio Rank: 5
UNG Calmar Ratio Rank: 3
UNG Martin Ratio Rank: 4

LNG

LNG Risk / Return Rank: 36
LNG Sharpe Ratio Rank: 37
LNG Sortino Ratio Rank: 32
LNG Omega Ratio Rank: 32
LNG Calmar Ratio Rank: 40
LNG Martin Ratio Rank: 41

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

UNG vs. LNG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for United States Natural Gas Fund LP (UNG) and Cheniere Energy, Inc. (LNG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	UNG	LNG	Difference
Sharpe ratio Return per unit of total volatility	-0.53	-0.07	-0.46
Sortino ratio Return per unit of downside risk	-0.45	0.09	-0.54
Omega ratio Gain probability vs. loss probability	0.94	1.01	-0.07
Calmar ratio Return relative to maximum drawdown	-0.62	0.02	-0.64
Martin ratio Return relative to average drawdown	-0.91	0.05	-0.96
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UNG vs. LNG - Sharpe Ratio Comparison

The current UNG Sharpe Ratio is -0.53, which is lower than the LNG Sharpe Ratio of -0.07. The chart below compares the historical Sharpe Ratios of UNG and LNG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	UNG	LNG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.53	-0.07	-0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.36	0.77	-1.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.38	0.68	-1.06
Sharpe Ratio (All Time) Calculated using the full available price history	-0.57	0.16	-0.73

Drawdowns

UNG vs. LNG - Drawdown Comparison

The maximum UNG drawdown since its inception was -99.88%, roughly equal to the maximum LNG drawdown of -97.84%. Use the drawdown chart below to compare losses from any high point for UNG and LNG.

Drawdown Indicators

	UNG	LNG	Difference
Max Drawdown Largest peak-to-trough decline	-99.88%	-97.84%	-2.04%
Max Drawdown (1Y) Largest decline over 1 year	-43.86%	-24.09%	-19.77%
Max Drawdown (3Y) Largest decline over 3 years	-68.16%	-24.87%	-43.29%
Max Drawdown (5Y) Largest decline over 5 years	-92.49%	-24.87%	-67.62%
Max Drawdown (10Y) Largest decline over 10 years	-93.55%	-57.53%	-36.02%
Current Drawdown Current decline from peak	-99.86%	-20.33%	-79.53%
Average Drawdown Average peak-to-trough decline	-89.96%	-43.17%	-46.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	29.59%	11.43%	+18.16%

Volatility

UNG vs. LNG - Volatility Comparison

United States Natural Gas Fund LP (UNG) has a higher volatility of 13.11% compared to Cheniere Energy, Inc. (LNG) at 9.69%. This indicates that UNG's price experiences larger fluctuations and is considered to be riskier than LNG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UNG	LNG	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.11%	9.69%	+3.42%
Volatility (6M) Calculated over the trailing 6-month period	53.02%	21.74%	+31.28%
Volatility (1Y) Calculated over the trailing 1-year period	60.90%	27.75%	+33.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	64.09%	30.27%	+33.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	54.79%	32.67%	+22.12%

Dividends

UNG vs. LNG - Dividend Comparison

UNG has not paid dividends to shareholders, while LNG's dividend yield for the trailing twelve months is around 0.92%.

Position	TTM	2025	2024	2023	2022	2021
LNG Cheniere Energy, Inc.	0.92%	1.06%	0.84%	0.95%	0.92%	0.33%
UNG United States Natural Gas Fund LP	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both UNG and LNG in my portfolio?

UNG and LNG have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UNG or LNG?

UNG has higher volatility (13.11%) compared to LNG (9.69%). In terms of maximum drawdown, UNG dropped -99.88% vs LNG's -97.84%.

Which has better risk-adjusted returns?

LNG currently has the higher Sharpe Ratio (-0.07 vs -0.53), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.