2 January 2025: Investment Product Ideas
- Rallying Natural Gas prices. Natural gas prices surged more than 12% on Monday, marking their largest single-day percentage gain in nearly three years and a 90% increase over the past five months. The rally was driven by forecasts of declining temperatures in the U.S. and Europe, alongside heightened uncertainty about potential disruptions to Russian natural gas supplies to Europe due to tensions with Ukraine.
- Upcoming Artic Blast in the first week of January 2025. Residents along the U.S. East Coast should prepare for a wave of Arctic air sweeping through at the start of the new year. Fox Weather reports that some areas could experience temperatures plummeting to nearly 30 degrees below average. This Arctic outbreak is expected to begin Wednesday and persist through the first week of January. This weather phenomenon is likely to positively affect natural gas prices.
- Better outlook of natural gas export permits. President-elect Donald Trump has pledged to accelerate the approval of LNG export permits, reversing a Biden-era pause and paving the way for more lucrative exports compared to domestic gas sales. A new wave of North American liquefied natural gas supply is anticipated to enter the market by 2025. While global LNG prices are forecasted to weaken, U.S. natural gas prices are expected to rise, according to S&P Global Commodity Insights’ 2025 energy outlook, released on December 11. The market also anticipates the Trump administration will approve all pending LNG export projects, potentially enabling final investment decisions in the latter half of 2025.
Natural Gas Price
(Source: Bloomberg)
Fund Name (Ticker) | United States Natural Gas Fund (UNG US) |
Description | The United States Natural Gas Fund® LP (UNG) is an exchange-traded security that is designed to track the daily price movements of natural gas. UNG issues shares that may be purchased and sold on the NYSE Arca. |
Asset Class | Commodity |
30-Day Average Volume (as of 30 Dec) | 9,613,277 |
Net Assets of Fund (as of 30 Dec) | $913,493,065 |
12-Month Yield | NA |
Expense Ratio (Annual) | 1.01% |
Top Holdings
(as of 30 December 2024)
(Source: Bloomberg)
Fund Name (Ticker) | First Trust Natural Gas ETF (FCG US) |
Description | This exchange-traded fund seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the ISE-REVERE Natural Gas™ Index. |
Asset Class | Equity |
30-Day Average Volume (as of 30 Dec) | 364,571 |
Net Assets of Fund (as of 27 Dec) | $391,425,553 |
12-Month Yield | 2.79% |
P/E Ratio (as of 30 Dec) | 9.765 |
P/B Ratio (as of 30 Dec) | 1.318 |
Expense Ratio (Annual) | 0.60% |
Top 10 Holdings
(as of 27 December 2024)
(Source: Bloomberg)