Investors wanting exposure to natural gas markets have a choice of benchmarks for their risk-return profile, explains Simona Gambarini, associate director of research at ETF Securities.
The global natural gas market is highly fragmented, as infrastructure limitations and country-specific regulatory restrictions cause natural gas to be traded primarily as a regional commodity. There are a number of benchmarks tracking natural gas prices in different markets, and their performance can vary substantially in line with domestic supply and demand dynamics. Given the size of the US natural gas market, the main benchmark tracked by most natural gas exchanged-traded products (ETPs) is the Henry Hub natural gas price, based on trades at a Louisiana collection point known as the H...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
