Alternative investment manager Auspice Capital Advisors has launched the Canadian Natural Gas Index ETF (GAS) and the Canadian Natural Gas Index (CGI).
Together, they allow investors and market participants to actively monitor and speculate outright on the price of Canadian natural gas.
GAS and the CGI are the only ETF and retail benchmark globally tied to natural gas produced in Canada. Until now, there has been no other "pure play" for investors outside the wholesale marketplace to take advantage of and use to directly express a position in this important commodity.
"Canadian natural gas is critically important to the North American marketplace," says Tim Pickering, founder and chief investment officer of Auspice Capital Advisors. "Representing approximately 20 per cent of the continent's total production, Canada is the largest foreign supplier of natural gas to the US – the world's largest market participant. As such, it is important for investors to be able to accurately track and capitalise on the commodity's performance."
The Canadian Natural Gas Index ETF which trades on the Toronto Stock Exchange, tracks the performance of the Canadian Natural Gas Excess Return Index (CNGER), seeking to reflect the returns that an investor would expect to see when holding and rolling the contracts that constitute the CGI benchmark index.
"Natural gas is a valuable commodity used across residential, commercial, and industrial settings," says Pickering. "By allowing for a more accurate, transparent price tracking method, we hope to raise awareness of Canada's dominance within the global natural gas marketplace, enhancing transparency and participation in this important commodity."
The CGI Reference Price is displayed in US dollars and represents a three-month rolling exposure in order to take advantage of liquidity and minimise transaction costs. It is calculated and reported on the New York Stock Exchange website under the ticker symbol CDNGAS.
