Natural Gas ETF: Add A Little Variety To Your Energy Holdings
We all know that some of the world's primary energy supplies are also finite in quantity. For example, there is not an unending supply of crude oil available, and this is forcing the world's leading consumers of petroleum products to direct a lot of energy and attention towards alternative supplies.
The world is in this constant need of different energy supplies and that is a primary reason to consider an investment in a natural gas ETF. Consider that the United States Energy Information Association has stated that natural gas usage is forecast to increase by more than 60% by the year 2030. This alone would point towards a natural gas ETF as a savvy investment, but it doesn't mean that investors should consider only the producers of natural gas as a place to direct their investment dollars.
Consider that Russia and the United States are the world's current leaders in production of natural gas, but the demands of the market indicate quite clearly that there is going to be a call for expanded exploration and production of natural gas in general. This means that other countries, corporations and businesses will be diving headlong into the industry as well, which could translate into strong investment opportunities for knowledgeable fund managers.
Investors can also identify authorized participants offering a natural gas ETF tied to exploration and production, equipment and service companies working in the industry, through commodities investments, and even in leveraged ETFs that give investors exposure to the industry in a variety of ways.
Natural gas ETFs include United States Natural Gas Fund (UNG), First Trust ISE-Revere Natural Gas Index Fund (FCG), and PowerShares Oil & Gas Services Portfolio (PXJ).
A bit of research is often essential in selecting the appropriate choice for any particular investment goals, but the natural gas market and related industries are positioned for growth. There are short and long term options as well as choices within various parts of the industry, and it is up to the investor to decide which is suitable to their needs.
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