Try our mobile app

Roundhill Investments Launches LNG ETF (NYSE Arca: LNGG)

Published: 2023-09-22 12:31:00 ET
<<<  go to SRE company page

LNGG tracks the Alerian Liquefied Natural Gas Index, providing access to leading companies across the Liquefied Natural Gas (LNG) value chain. LNGG is the world's first dedicated LNG ETF.

NEW YORK, Sept. 22, 2023 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, is pleased to announce the launch of the Roundhill Alerian LNG ETF (LNGG), which begins trading on the NYSE Arca today. LNGG is the world's first dedicated LNG ETF. 

Roundhill Investments (PRNewsfoto/Roundhill Investments)

"LNG represents a transformative frontier in the energy sector, and its growth trajectory is evident from its rapidly expanding share within the global gas supply," said Dave Mazza, Chief Strategy Officer at Roundhill Investments. "For climate conscious investors, LNGG offers a practical solution to invest in a transitional fuel source that is significantly cleaner than alternatives like coal."

Natural gas prices vary widely depending on a region's ability to produce the energy source domestically. For example, U.S Henry Hub gas prices have averaged $2.58 thus far in 2023, while European gas has traded at an average of $13.10.1 Liquefied natural gas, or LNG, allows for countries like the United States to effectively export natural gas to regions like the EU and Asia, capturing a spread and helping to balance global supply and demand.

As a result, LNG's share in the global gas supply is projected to rise from 13% today to an impressive 23% by 2050.2 This growth will be driven by meeting escalating demand and a significant surge in anticipated spending on greenfield LNG projects in the upcoming years, with approved greenfield investments amounting to $27 billion in 2022 and a projected $42 billion in 2024.3  Meanwhile, spending on U.S. LNG projects is expected to amount to an estimated $100 billion over the next five years.4

LNGG offers investors a rare combination in the energy sector — growth and income — with the Alerian LNG Index yielding 4.5% as of August 31, 2023.5

LNGG's exposures span across the LNG value chain, including Liquefaction, LNG Carriers, Regasification, and more.

The fund's top holdings at launch include:

HOLDINGS

% WEIGHTING

Cheniere Energy Inc

16.1 %

Santos Ltd

14.1 %

Woodside Energy Group Ltd

13.4 %

Tokyo Electric Power Co Holdings Inc

4.8 %

ENN Energy Holdings Ltd

4.6 %

Qatar Gas Transport Co Ltd

4.2 %

Golar LNG Ltd

4.1 %

New Fortress Energy Inc

3.9 %

FLEX LNG Ltd

2.8 %

Mitsui OSK Lines Ltd

2.5 %

NextDecade Corp

2.4 %

Kunlun Energy Co Ltd

2.1 %

Petronas Gas Bhd

2.1 %

Enbridge Inc

2.1 %

TotalEnergies SE

2.0 %

Shell PLC

2.0 %

Sempra

2.0 %

Exxon Mobil Corp

2.0 %

Chevron Corp

2.0 %

Korea Gas Corp

1.9 %

Holdings are subject to change.

 About Roundhill Investments:

Roundhill Investments is a registered investment adviser focused on offering innovative financial products designed to offer exposure to investment themes that appeal to the next generation of investors. To learn more about the company, please visit roundhillinvestments.com.

Investors should consider the investment objectives, risk, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Alerian LNG ETF please call 1-877-220-7649 or visit the website at roundhillinvestments.com/etf/lngg. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk, including possible loss of principal. Alerian Liquefied Natural Gas Index. The Index is composed of the common stock of domestic and international companies in both developed and emerging markets, that are principally engaged in or derive significant revenue from the LNG industry. An Index cannot be invested in directly. Concentration Risk. Because the Fund's assets will be concentrated in an industry or group of industries to the extent the Index concentrates in a particular industry or group of industries, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries. Oil & Gas Producers Industry. Companies in the Oil and Gas Producers Industry (the Industry) are affected by worldwide energy prices and exploration and production costs. The Industry may have significant operations in areas at risk for natural disasters, social and political unrest, and environmental damage. These companies may also be at risk for increased government regulation and intervention, litigation, and negative publicity and public perception. Depositary Receipt Risk. Depositary receipts, including American depositary receipts, involve risks similar to those associated with investments in foreign securities, such as changes in political or economic conditions of other countries and changes in the exchange rates of foreign currencies. Foreign & Emerging Markets Risks. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid, and more volatile than securities markets in more developed markets. New Fund Risk. The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Non-Diversification Risk. Because the Fund is "non-diversified," it may invest a greater percentage of its assets in the securities of a single issuer or a lesser number of issuers than if it was a diversified fund. As a result, the Fund may be more exposed to the risks associated with and developments affecting an individual issuer or a lesser number of issuers than a fund that invests more widely. This may increase the Fund's volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund's performance. Passive Management Risk. The fund is passively managed and attempts to mirror the composition and performance of the Alerian Liquefied Natural Gas Index. The Fund's returns may not match due to expenses incurred by the Fund or lack of precise correlation with the index. Tracking Error Risk. As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons. For example, the Fund incurs operating expenses and portfolio transaction costs not incurred by the Index. In addition, the Fund may not be fully invested in the securities of the Index at all times or may hold securities not included in the Index.

The Roundhill Alerian LNG ETF is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, "VettaFi"). VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the Roundhill Alerian LNG ETF or any member of the public regarding the advisability of investing in securities generally or in Roundhill Alerian LNG ETF particularly or the ability of the Alerian Liquefied Natural Gas Index (the "Index") to track general market performance. VettaFi's only relationship to Roundhill Financial Inc. is the licensing of the Index which is determined, composed and calculated without regard to Roundhill Financial Inc. or the Roundhill Alerian LNG ETF. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Roundhill Alerian LNG ETF to be issued. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of the Roundhill Alerian LNG ETF.

"Alerian Liquefied Natural Gas IndexSM", "AlerianSM", "VettaFiSM", and "LNGISM" are servicemarks of VettaFi and their use is granted under a license from VettaFi. VettaFi does not guarantee the accuracy and/or completeness of the Index or any data included therein and VettaFi shall have no liability for any errors, omissions, interruptions or defects therein. VettaFi makes no warranty, express or implied, representations or promises, as to results to be obtained by Roundhill Financial Inc., or any other person or entity from the use of the Index or any data included therein. VettaFi makes no express or implied warranties, representations or promises, regarding the originality, merchantability, suitability, or fitness for a particular purpose or use with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall VettaFi have any liability for any direct, indirect, special, incidental, punitive, consequential, or other damages (including lost profits), even if notified of the possibility of such damages.

Please see the prospectus for details of these and other risks. Roundhill Financial Inc. serves as the investment advisor.The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.

1 International Monetary Fund, FRED as of Jan 1, 2023 to Sept 13, 2023. Value represents the benchmark prices which are representative of the global market. They are determined by the largest exporter of a given commodity. Prices are period averages in nominal U.S. dollars.

2 Energy Insights by McKinsey, Global Gas Outlook 2050, as of February 26, 2021.

3 Rystad Energy's Ucube, Rystad energy research and analysis, as of August 23, 2022.

4 Wood Mackenzie, as of February 22, 2023.

5 Bloomberg, as of August 31, 2023. Dividend Indicated Yield - Net is defined by Bloomberg as the most recently announced net dividend, annualized based on the Dividend Frequency, then divided by the current market price.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/roundhill-investments-launches-lng-etf-nyse-arca-lngg-301935664.html

SOURCE Roundhill Investments