On April 22, KB Asset Management will launch a thematic exchange-traded fund (ETF) that invests across the entire U.S. natural gas industry. The United States is the world's largest producer and exporter of natural gas.
The RISE US Natural Gas Value Chain ETF is composed of key companies involved in the production, transportation, liquefaction, and export segments of the natural gas value chain. This product, boasting a balanced portfolio, is worth noting for investors interested in U.S. natural gas.
Natural gas serves as a "bridge energy" source, playing an intermediary role in the transition to eco-friendly energy, and is considered an important pillar in the future energy mix. The industry is expected to experience structural growth due to factors such as increased exports to Europe and Asia, expansion of liquefied natural gas (LNG) infrastructure, and rising demand linked to hydrogen.
The RISE US Natural Gas Value Chain ETF tracks the Solactive US Natural Gas Value Chain Index. The value chain is divided into production (30%), infrastructure (50%), and export (20%), with investments diversified across a total of 15 companies.
Production companies that extract underground natural gas using both conventional and unconventional methods include ExxonMobil, ConocoPhillips, and Occidental Petroleum.
In the transportation and storage infrastructure sector, major holdings include Enbridge, Williams Companies, and Oneok, which operate pipelines, storage facilities, and compression plants. In the LNG export sector, companies such as Chevron and Duke Energy, which possess liquefaction and export capabilities, are included.
Looking at the portfolio allocation by company, Enbridge accounts for 16.6%, ExxonMobil for 13.2%, Williams Companies for 12.1%, Chevron for 11.1%, and Kinder Morgan for 8.9%, ranking among the top holdings.
No Areum, Head of the ETF Division at KB Asset Management, explained, "Natural gas is drawing attention as the most practical energy source, thanks to its low carbon emissions and the potential for rapid infrastructure development." She added, "The RISE US Natural Gas Value Chain ETF is a thematic product that goes beyond simple resource investment, encompassing the scalability of energy transition through production, infrastructure, and export. It will serve as a strong alternative for investors considering portfolio diversification."
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