Global X Fires Up New US Natural Gas ETF As LNG Exports Surge

Global X ETFs on Wednesday, launched a new fund to capitalize on the boom in U.S. natural gas as the country’s export and production capacity widens.

The New York-based ETF issuer, which oversees close to $70 billion in assets, unveiled the Global X U.S. Natural Gas ETF (NYSE:LNGX), intended to tap into the building momentum throughout the natural gas value chain.

The passively managed fund tracks the Global X U.S. Natural Gas Index and carries an expense ratio of 0.45%. It gives investors exposure to the entire value chain, from exploration and production to transport, storage, liquefaction, and export.

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Targeting America’s Gas Growth Story

Global X said the fund was created because of increasing investor demand for focused exposure to natural gas companies rather than broad energy strategies that blend oil and gas holdings. LNGX focuses on those firms where the majority of proven reserves are natural gas or NGLs – giving investors a pure-play view of the sector that has become central to America’s export strength.

It added that with the U.S. now accounting for about a quarter of global gas production and electricity generation, and with plans to more than double liquefaction capacity by 2029, the country’s role in the global energy mix continues to grow rapidly.

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Expanding The Energy Lineup

LNGX builds on Global X’s growing lineup of energy-focused ETFs, through which it already manages around $4.5 billion in assets targeting the oil and gas midstream segment. The firm said the shifting trade and energy policies around the world may lead to sustained global reliance on U.S. LNG exports in the coming years.

Global X believes that natural gas will continue to be a source of essential fuel for baseload power generation to feed the increasing demand for electricity from data centers and to complement renewable energy sources.

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