Roundhill Investments has expanded its ETF lineup to offer exposure to the fast-growing LNG market.
The Roundhill Alerian LNG ETF (LNGG), listed on NYSE Arca on September 22, provides access to U.S. and international companies materially engaged in the LNG industry. LNGG is the first ETF providing focused exposure to the global LNG market.
LNGG is based on the Alerian Liquefied Natural Gas Index (ALNGX). The index consists of companies focused on liquefaction, shipping LNG (LNG carriers), as well as regasification. The index also includes diversified LNG companies that participate in more than one of the three segments.
LNGG’s underlying index comprises 28 constituents, with about 40% of the index by weight in U.S. companies. At time of launch, Cheniere Energy (LNG), a pure-play liquefaction company, is LNGG’s largest holding.
LNG, or liquefied natural gas, is natural gas that has been cooled to a liquid state. Compared to natural gas, LNG is about 600 times smaller. This makes LNG more suitable for transportation and storage, according to Stacey Morris, head of energy research at VettaFi.
Growth Expected for LNG Market
The U.S. became the world’s largest LNG exporter in 2022. However, the global LNG market is expected to see significant growth in the coming years. Global LNG demand is estimated to reach 627 million tons in 2035, implying nearly 60% growth from 2022, according to S&P Global.
Roundhill is best known for its innovative thematic offerings. Furthermore, the issuer has launched several first-to-market thematic funds, including the first metaverse and sports betting ETFs: the Roundhill Ball Metaverse ETF (METV) and the Roundhill Sports Betting & iGaming ETF (BETZ).
The issuer last month launched the Roundhill S&P Global Luxury ETF (LUXX), which provides investors with access to the luxury goods sector.
See more: “Roundhill Launches Global Luxury ETF”
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