Oil prices fell about 3% on Monday, plagued by investor concerns over the speculation of sooner-than-expected interest rate hikes by the Fed.
Natural gas is demonstrating more resilience amid the turbulent market. Natural gas has returned around 63% over the past year, the second-best of all energy commodities, trailing only heating oil at 66% during the same period.
Energy is slated to be the theme of the year as investors look toward strategies and sectors that are less sensitive to inflation and rising rates.
Energy infrastructure funds, such as the Alerian Energy Infrastructure ETF (ENFR), offer diversified exposure to the energy sector — spanning market caps, energy commodities, and services. ENFR invests in a range of energy companies located in the U.S. and Canada.
The fund’s five biggest holdings make up more than a third of the ETF and all provide exposure to natural gas, in addition to crude oil and other energy commodities.
Enbridge, weighted at just over 10%, is the fund’s largest holding. The firm’s natural gas network moves about 20% of all gas consumed in the U.S. Enbridge’s gas transmission and midstream pipelines cover about 75,696 miles in 30 U.S. states, five Canadian provinces, and offshore of the Gulf of Mexico.
Enbridge is the largest natural gas supplier to New England, the Southeast, and nearly all of Florida.
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products.
The company operates through four segments: NGL pipelines and services, crude oil pipelines and services, natural gas pipelines and services, and petrochemical and refined products services.
TC Energy builds and operates safe and reliable energy infrastructure. The company has a network of natural gas pipelines that stretches 57,900 miles and supplies more than 25% of the natural gas consumed daily across North America.
For more news, information, and strategy, visit the Energy Infrastructure Channel.