New ETF first to track Canadian natural gas

Investors can now track Canadian natural gas thanks to the new Canadian Natural Gas Index ETF and Canadian Natural Gas Index launched by Auspice Capital Advisors.

“Canadian natural gas is critically important to the North American marketplace,” Tim Pickering, founder and CIO of Auspice, says in a statement. “Representing approximately 20% of the continent’s total production, Canada is the largest foreign supplier of natural gas to the U.S. — the world’s largest market participant. As such, it is important for investors to be able to accurately track and capitalize on the commodity’s performance.”

Read: National Energy Board lowers production forecast

The ETF begins trading today. Tracking the performance of the Canadian Natural Gas Excess Return Index, the ETF seeks to reflect the returns from holding and rolling the contracts of the CGI.

Adds Pickering, “By allowing for a more accurate, transparent price-tracking method, we hope to raise awareness of Canada’s dominance within the global natural gas marketplace and allow for enhanced market transparency and participation in this important commodity.”

Read: How Canadian stocks would react to Clinton, Trump

The CGI reference price, displayed in U.S. dollars, represents a three-month rolling exposure, which takes advantage of liquidity and minimizes transaction costs.

Also read: Avoid interest rate-sensitive trades

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.