This Claymore Natural Gas Commodity ETF fund will provide non-leveraged exposure to the Alberta natural gas market. It will do so by investing the investors money in physical natural gas forward contracts. As per morning star, this fund targets a 1:1 relationship between assets and natural gas exposure.
Benchmark Fund for Claymore Natural Gas Commodity ETF: NGX Canadian Natural Gas Index
Ticker Symbols Common Units TSX: GAS
Initial Unit Price: $20.00
Income Distribution: Regular Income
Distribution Frequency: Annual
CUSIP Symbols Common Units: 18384H100
Fund Management Fee: 0.80%
What are the benefits of investing through the Claymore Natural Gas Commodity ETF?
The Claymore Natural Gas Commodity ETF gives the investors the easy option to invest in Natural Gas business and contracts, without the hassles of being directly involved in the Natural Gas exploration, Natural Gas operations, Natural Gas reserves, Natural Gas engineering and management risks associated with an investment in Natural Gas entities that are explored for, produce and sell natural gas.
As a whole, Natural gas has emerged as one of the cleanest and environment friendly source of fuel and energy. Hence, whenever someone talks about investments in the Alternative Energy Mutual Funds, the Natural Gas Investment surely comes into discussion because of its clean and environment friendly nature.
How are the natural gas prices determined?
There are many factors which play are role in determination of natural gas prices. Here we are listing the ones which have a major impact:
- - Weather – Heating /Cooling demand
- - Performance, demand and supply of other alternative energy sources
- - Oil sands production
- - Electricity generation
- - Fertilizer production
- - Petrochemical production
- - Drilling and Exploration Activity
- - Production decline rates
- - Pipeline transportation constraints
- - Storage Balances
- - Liquified Natural Gas (LNG)
- - Natural Disasters (i.e. Hurricanes)
What are the risks of investing in Natural Gas sector?
Remember that it is alternative form of energy. Hence, the price and demand and supply of Natural gas will vary depending upon not just the discovery and innovation in exploration of natural Gas, but also vary with the performance and demand and supply and innovation in other alternative energy sectors like Biomass, Solar Energy, Wind Energy, etc. Moreover, the Natural Gas has a risk of being extinct one day, while other sources like the solar energy and wind energy may not face this problem or risk
Ready to invest in the Natural Gas sector?
Here is a list of all available ETF's in the Natural Gas Commodities and ETF space: Natural Gas ETF List: Trade Natural Gas through these ETF
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