As its name implies, FCG has significant natural gas exposure, though many of its holdings increased oil output when crude prices were high. Still, natural gas prices are part of the equation with FCG.
Many observers, though, expect that higher demand for natural gas to heat homes and fire power plants, along with lower production, could steadily trim away at the large natural gas inventories even in a normal winter season.
“FCG focuses on companies with significant natural-gas production. While several components are pure play natural-gas producers, most also have significant oil production, such as Devon Energy Corp (NYSE: DVN),” adds MarketWatch.
FCG tracks the equal-weight ISE-Revere Natural Gas Index. The $245.6 million ETF holds 38 stocks. The median market value of FCG’s holdings is nearly $8 billion.
For more information on the crude oil market, visit our oil category.