Just in time for rebound in natural gas prices, Jefferies has launched the highly anticipated Jefferies | TR/J CRB Wildcatters Exploration & Production (NYSEArca: WCAT) exchange traded fund (ETF).

WCAT is an equity ETF that holds small- and mid-cap oil and gas exploration and production companies and tracks the Thomson Reuters/Jefferies CRB Wildcatters Energy E&P Equity Index.

Owning such a fund offers a variety of benefits, including:

• Equity-based commodity ETFs don’t have the same implications as ETFs that hold physical assets or futures, particularly when it comes to taxes. [ETFs and taxes.]
• Equity-based commodity ETFs also tend to not be as volatile as futures funds – when a commodity’s price declines, the effects aren’t immediately felt. [It's what makes up your ETF that counts.]
• Small-cap energy stocks are challenging to research and tend to be riskier; owning such an ETF gives investors exposure to a range of natural gas and oil companies without having to do additional research or legwork on individual components. [A comeback for natural gas and oil?]
• Small-caps tend to outperform large-caps in economic recoveries, thanks to their ability to adapt.
• Small-cap energy ETFs can help you diversify, since many energy equity ETFs hold larger companies. [Natural gas in the spotlight.]

“An investment in natural gas is an investment in the future of American energy independence,” said Adam De Chiara, Co-President of Jefferies Asset Management.

For more stories about natural gas, visit our natural gas category.

Tags: Asset Class ETFs, Commodity ETFs, Energy, Mid-Cap, Natural Gas, New ETFs, Small-Cap, WCAT