Commodity ETF ’ s

Commodity ETF’sCommodity ETF’sNatural Gas

Commodity ETFs Commodity ETFs & Types& Types

Definition: Commodity ETF refers to a collection of funds in physical commodities.

Types:Industrial Metal

Precious Metal

Agricultural

Energy Sectors

Compositions of Compositions of ETFETF

Futures contractFutures contract

Physically buy/stockpile the commodityPhysically buy/stockpile the commodityExample: A Gold ETF buying gold bullionsExample: A Gold ETF buying gold bullions

Buy and sell stocks in companies that Buy and sell stocks in companies that deal with the commoditydeal with the commodity

Natural Gas ETFNatural Gas ETF

Major UsesMajor Uses

Industrial Industrial

Electric generationElectric generation

Residential Residential

CommercialCommercial

Why Natural Gas?Why Natural Gas?Environment & Environment & TechnologyTechnology

More sustainable source of More sustainable source of

energyenergy

Produces less carbon dioxide Produces less carbon dioxide

than coal or gasthan coal or gas

Nations pressured to reduce Nations pressured to reduce

pollutantspollutants

Global Production & Global Production & Market PredictionMarket Prediction

Global demand increaseGlobal demand increase

Excess demand than supply in Excess demand than supply in

some areas of the worldsome areas of the world

Emerging markets Emerging markets

Production & Production & ConsumptionConsumption

Current IssuesCurrent Issues

Japan (nuclear energy)Japan (nuclear energy)

New resources recovery in Qatar New resources recovery in Qatar

(3(3rdrd largest NG reserves) largest NG reserves)

XOM XOM

Natural Gas & Natural Gas & CanadaCanada

Abundant, clean, versatileAbundant, clean, versatile

Meets environmental goals, while Meets environmental goals, while contributing to economic growthcontributing to economic growth

Investment Investment AlternativesAlternativesUNG 2 year historical priceUNG 2 year historical price

Investment Investment AlternativesAlternativesUNG current price for last 6 months UNG current price for last 6 months

( technical analysis)( technical analysis)

Estimated expected Estimated expected returnreturn

Investment Investment AlternativesAlternatives

GAZ 2 year historical priceGAZ 2 year historical price

Investment Investment AlternativesAlternativesGAZ (Technical Analysis)GAZ (Technical Analysis)

GAZ Estimated GAZ Estimated ReturnReturn

SummarySummaryChoose commodity ETF Choose commodity ETF

Commodity ETF’s come in different Commodity ETF’s come in different types and stylestypes and styles

Natural gas Important source of global Natural gas Important source of global energyenergy

Large supply, growing demandLarge supply, growing demand

UNG & GAZ ETF optionsUNG & GAZ ETF options