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Commodity ETF ’ s

Commodity ETF ’ s. Natural Gas. Commodity ETFs & Types . Definition: Commodity ETF refers to a collection of funds in physical commodities. Types: Industrial Metal Precious Metal Agricultural Energy Sectors. Compositions of ETF. Futures contract Physically buy/stockpile the commodity

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Commodity ETF ’ s

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  1. Commodity ETF’s Natural Gas

  2. Commodity ETFs & Types • Definition: Commodity ETF refers to a collection of funds in physical commodities. • Types: • Industrial Metal • Precious Metal • Agricultural • Energy Sectors

  3. Compositions of ETF • Futures contract • Physically buy/stockpile the commodity • Example: A Gold ETF buying gold bullions • Buy and sell stocks in companies that deal with the commodity

  4. Natural Gas ETF

  5. Major Uses • Industrial • Electric generation • Residential • Commercial

  6. Why Natural Gas? • Environment & Technology • More sustainable source of energy • Produces less carbon dioxide than coal or gas • Nations pressured to reduce pollutants

  7. Global Production & Market Prediction • Global demand increase • Excess demand than supply in some areas of the world • Emerging markets

  8. Production & Consumption

  9. Current Issues • Japan (nuclear energy) • New resources recovery in Qatar (3rd largest NG reserves) • XOM

  10. Natural Gas & Canada • Abundant, clean, versatile • Meets environmental goals, while contributing to economic growth

  11. Investment Alternatives • UNG 2 year historical price

  12. Investment Alternatives • UNG current price for last 6 months ( technical analysis)

  13. Estimated expected return

  14. Investment Alternatives • GAZ 2 year historical price

  15. Investment Alternatives • GAZ (Technical Analysis)

  16. GAZ Estimated Return

  17. Summary • Choose commodity ETF • Commodity ETF’s come in different types and styles • Natural gas Important source of global energy • Large supply, growing demand • UNG & GAZ ETF options

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