LNGX offers pure-play exposure to the value chain from exploration and production to export infrastructure
Global X Management Company LLC, the New York-based provider of exchange-traded funds, today announced the launch of the Global X U.S. Natural Gas ETF (LNGX), which seeks to capture the growing momentum of natural gas purchases from international markets. LNGX tracks the Global X U.S. Natural Gas Index. The fund is passively managed with an expense ratio of 45 basis points.
“We saw an opportunity to address market demand with a fund offering pure-play exposure to the natural gas value chain as a focused segment of the broader U.S. oil and gas industry,” said Pedro Palandrani, Head of Product Research & Development at Global X.
As the world’s largest liquified natural gas (LNG) exporter, the U.S. is the backbone of global energy supply, providing roughly one-quarter of global gas production and global electricity generation.[i] In addition, Global X believes companies may benefit from a fund that offers targeted exposure to the U.S. natural gas value chain, from upstream exploration and production to midstream transport, storage, processing, liquefaction, and export.
“Trade dynamics are driving policy changes that we expect could result in greater global reliance on U.S. LNG exports for years to come,” said Scott Helfstein, Head of Investment Strategy at Global X. “We believe that natural gas remains an essential way to meet baseload power demand, including incremental needs from data centers, while complementing renewables.”
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
