Yesterday we profiled exchange traded funds that invest in natural gas futures, and this presents the opportunity to also highlight those ETFs that are exposed to natural gas related equities. [ETF Chart of the Day: Natural Gas]

Historically, equities that are involved in the production, exploration, or marketing/servicing of natural gas have displayed a high level of correlation with the prices of natural gas itself, and investing in such funds can be a way for investment managers to monetize their views on natural gas price movements themselves.

FCG (First Trust ISE-Revere Natural Gas Index) is the benchmark fund in the category, having attracted nearly $400 million in assets since debuting in 2007. The fund is equal-weighted and owns equities that are involved in the exploration and production of natural gas.

Currently, top holdings of FCG are XOM, STR, COP, STO and RDS.A.

A number of ETFs exist focusing on both oil and gas explorers and producers, but FCG remains the only “pure-play” in the landscape as far as devoting exposure to those equities that derive a significant portion of revenues from natural gas.

For instance, XOP (SPDR S&P Oil & Gas Exploration & Production), IEO (iShares DJ U.S. Oil & Gas Exploration & Production), PXE (PowerShares Dynamic Energy Exploration & Production) and WCAT (Jefferies TR/J CRB Wildcatters Exploration & Production Equity) are several examples that grant exposure to equities that are involved in both the natural gas as well as the oil spaces.