In response to the rising demand for natural gas, Amplify has expanded its ETF lineup with the launch of the Amplify Samsung U.S. Natural Gas Infrastructure ETF (USNG) on the NYSE Arca.
The new fund provides exposure to 20–25 U.S. companies in the natural gas industry.
According to the prospectus, USNG primarily invests in midstream companies, a category that involves the transportation, storage, distribution and marketing of natural gas. The remaining portion of USNG is allocated to upstream and downstream companies. However, the fund’s exposure to these categories may shift in response to changing market conditions. Samsung Asset Management, the fund’s sub-advisor implements a growth at a reasonable price (GARP) strategy to build a portfolio of companies it expects will grow their earnings, cash flow and dividends.
Capitalizing on Natural Gas Demand
Natural gas demand is expected to rise significantly by 2030. Driven by both domestic consumption and export growth, natural gas infrastructure is primed for expansion accordingly.
“Due to a declared National Energy Emergency, the U.S. will be actively expanding natural gas production and infrastructure, leading to significant investment and capital commitment to this important segment of the energy market,” said Amplify ETFs CEO Christian Magoon. “USNG is positioned to actively navigate the opportunities and challenges of this growth industry.”
USNG has an expense ratio of 0.59%. Additionally, Ryan Keunho Kim and Junwoo Park, who serve as portfolio managers, actively manage the fund.
Top equity holdings at launch include Kinder Morgan, Williams Cos, MPLX LP, and Enbridge. Other holdings include TC Energy Corp, Vistra Corp, DT Midstream Inc, Archrock Inc, Solaris Energy Infrastructure and Energy Transfer.
Amplify has 31 ETFs listed in the United States. The largest fund, the Amplify CWP Enhanced Dividend Income ETF (DIVO) has $4.3 billion in assets under management.
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