Delivering access the US natural gas market

US

Investors wanting exposure to natural gas markets have a choice of benchmarks for their risk-return profile, explains Simona Gambarini, associate director of research at ETF Securities.

The global natural gas market is highly fragmented, as infrastructure limitations and country-specific regulatory restrictions cause natural gas to be traded primarily as a regional commodity. There are a number of benchmarks tracking natural gas prices in different markets, and their performance can vary substantially in line with domestic supply and demand dynamics. Given the size of the US natural gas market, the main benchmark tracked by most natural gas exchanged-traded products (ETPs) is the Henry Hub natural gas price, based on trades at a Louisiana collection point known as the H...