2 Best Natural Gas ETFs in Canada (June 2026)

Natural gas ETFs are designed for Canadian investors looking to gain direct exposure to natural gas prices and energy markets. ETFs like HNU.TO and HUN.TO track natural gas futures, allowing investors to benefit from price movements in this key energy commodity.

The key advantage of natural gas ETFs is their potential for strong returns during periods of rising energy demand or supply disruptions. However, they are extremely volatile and influenced by seasonal demand, weather patterns, and global energy markets.

In this guide, we break down the best natural gas ETFs in Canada, comparing strategy, risk, and fees so you can decide how they fit into your TFSA, RRSP, or tactical trading strategy.

A natural gas ETF in Canada is an exchange-traded fund that provides exposure to natural gas prices, typically through futures contracts rather than physical assets or company stocks. These ETFs are designed to track the performance of natural gas as a commodity.

For example, HNU.TO (~1.15% MER) is a leveraged ETF that aims to deliver amplified daily returns based on natural gas prices, while HUN.TO (~1.15% MER) provides unleveraged exposure to natural gas futures. UNG (U.S.-listed) is another widely used ETF tracking natural gas prices.

Natural gas ETFs are primarily used for short-term trading or tactical positioning. Investors should understand that futures-based ETFs can experience tracking errors and are highly sensitive to volatility and market conditions.

Pros

• Direct exposure to natural gas price movements
• Potential for high returns during commodity price spikes
• Useful for short-term trading or tactical allocation
• Access to energy markets without owning individual stocks

Cons

• Extremely volatile and driven by weather and seasonal demand
• Leveraged ETFs like HNU.TO amplify both gains and losses
• Futures-based structure can lead to tracking errors and roll costs
• Not suitable for long-term buy-and-hold investors