What Is KOLD? ProShares UltraShort Bloomberg Natural Gas

KOLD is the ProShares UltraShort Bloomberg Natural Gas ETF, a leveraged inverse fund that seeks daily results, before fees and expenses, equal to negative 2x (negative 200%) the daily performance of the Bloomberg Natural Gas Subindex, an index based on Henry Hub natural gas futures. It is engineered to move opposite to natural gas, rising when gas falls and falling when gas rises, at roughly double the daily magnitude.

Issued by ProShares and structured as a commodity pool, KOLD delivers a K-1 at tax time and carries a net expense ratio near 0.95%. Because natural gas is one of the most volatile commodities, KOLD's inverse 2x leverage produces very large swings and makes it strictly a short-term instrument for expressing a bearish gas view.

Approximate weights as of mid-2026; refresh quarterly from ProShares's fund page. Each ticker links to its individual stock guide in Walnut.

KOLD holds no physical natural gas and no stocks. Its exposure comes from short positions in Henry Hub natural gas futures and swap agreements referencing the Bloomberg Natural Gas Subindex, at roughly negative 200% notional, with cash and short-term Treasuries held as collateral.

Natural gas futures respond sharply to weather, storage reports, and production, and the curve regularly shifts between contango and backwardation. On the inverse side, KOLD's continual rolling of short gas futures means the shape of that curve directly affects returns on top of the daily price move and the 2x leverage.

KOLD is the bearish, 2x inverse natural gas fund, while BOIL is its 2x long mirror and unleveraged options such as UNG offer roughly 1x long exposure. The choice comes down to direction and how much daily volatility you can tolerate: KOLD for a leveraged bet that gas falls, BOIL for a leveraged bet that it rises, UNG for a steadier long view.

All are trading tools rather than core holdings, but KOLD and BOIL carry the added risk of daily-reset decay, which is especially severe given natural gas volatility. KOLD is the tool to reach for only when you have a clear, short-term expectation that natural gas prices will decline, and you intend to monitor the position closely.

KOLD resets its inverse 2x leverage every day, so the negative 200% objective holds for a single day at a time. Over longer periods, returns compound, and because natural gas is exceptionally volatile, that compounding drives severe volatility decay. A market that swings hard in both directions but ends flat can still leave KOLD substantially lower.

Because KOLD is short natural gas futures, the futures curve works differently than for a long fund: contango can be a tailwind on the roll, while backwardation can be a headwind. Combined with leverage decay and the sheer volatility of gas, these dynamics make KOLD's multi-day path hard to predict and have led to periodic reverse splits, which is why it is designed for short holding periods with daily monitoring.

KOLD fits active traders who want a leveraged, short-term way to profit from falling natural gas prices or to briefly hedge gas exposure, and who accept that it amplifies losses just as fast when gas rises. It is not a long-term holding, and its history of decay and reverse splits shows how quickly value can erode over time.

With no income, a roughly 0.95% expense ratio, and K-1 tax paperwork, KOLD plays a narrow tactical role rather than a portfolio-anchor role. Whether leveraged inverse natural gas exposure suits you depends on your goals, risk tolerance, and time horizon. Walnut is not an investment adviser and this is not a recommendation.

KOLD trades on NYSE Arca under the ticker KOLD and is available through most US brokers, including Robinhood, Fidelity, Schwab, and Public, often in fractional shares. Because it is a leveraged inverse product on a volatile commodity, many traders use limit orders and monitor positions closely rather than holding passively.

If you hold or plan to trade KOLD, you can connect your brokerage to Walnut to view the position within your overall portfolio and thesis. Walnut mirrors your holdings read-only and never places trades on its own.

There are three common ways to get KOLD exposure. Buy shares (or fractional shares) of KOLD directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so KOLD sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. KOLD trades like a stock during market hours, so you buy it the same way you would any listed share.

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Whether KOLD is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Bloomberg Natural Gas Subindex (negative 2x daily), so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is KOLD a buy?

KOLD delivers 2x the inverse daily move of Henry Hub natural gas futures, rising when gas falls. Daily resets, natural gas volatility, and futures roll dynamics cause heavy decay over time, so it is a short-term trading instrument, not a hold. Walnut is not an investment adviser and this is not a recommendation.

Whether KOLD is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is KOLD a buy?

KOLD yields 0% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see KOLD dividend: yield and schedule.

New to funds like KOLD? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.