Jefferies is preparing expanding their line of exchange traded fund (ETF) offerings, this time with two energy-focused funds.
The next two ETFs that Jefferies has in the works are going to focus on the energy markets: Jefferies Natural Gas Equity ETF and the Energy Wildcatters Equity ETF.
ETF Daily News reports that the ETFs are in a direct competition with already existing funds, and will mainly focus in the energy sector.
These funds are designed to give exposure to the companies involved in production, transportation and storage within the energy commodity category. The natural gas fund will require that involved companies obtain 50% of their annual revenue from the exploration and production of natural gas. You can read more about what’s happening with natural gas here.
Some existing ETFS that hold the stock of natural gas and energy producers include:
- First Trust ISE-Revere Natural Gas (NYSEArca: FCG): up 48.3% year-to-date
- Energy Select Sector SDPR (NYSEArca: XLE): up 19.5% year-to-date
The filing is fresh after a recent commodity ETF launch from Jefferies.
For more stories about new ETFs, visit our new ETF category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.