WisdomTree Natural Gas (NGAS)

Overview

ETFS Natural Gas (1689) is an innovative financial product designed for investors who seek exposure to the natural gas market. As an Exchange Traded Commodity (ETC), it functions similarly to an Exchange Traded Fund (ETF) in that it can be traded on exchanges like a stock, offering a dynamic investment option that combines the characteristics of commodity investments with the flexibility and ease of stock trading. It enables investors to gain a total return investment in natural gas by tracking the Bloomberg Natural Gas Subindex, augmented by returns on collateral. The ETC’s structure allows for its shares to be created and redeemed on demand by Authorized Participants, ensuring liquidity and access. The financial obligations of the ETC are secured by collateral, primarily in the form of fully funded swaps, with daily marked-to-market valuation to maintain transparency and security for investors. The collateral is safeguarded in pledge accounts managed by The Bank of New York Mellon, ensuring a high level of safety for the investors' capital.

Products and Services

• Total Return Investment in Natural Gas

  This product offers investors an opportunity to invest in the natural gas market by tracking the Bloomberg Natural Gas Subindex. The investment is designed to replicate the total return of the natural gas market, including price movements and returns on collateral, providing a comprehensive exposure to natural gas as a commodity.

• Exchange Traded Commodity (ETC)

  Similar to Exchange Traded Funds (ETFs), the ETC provides a blend of commodity investment with the ease of trading associated with equities. It allows for the creation and redemption of shares on demand by Authorized Participants, enhancing liquidity and making it an attractive option for both institutional and individual investors. The product's design caters to those looking for exposure to commodity prices without directly trading in commodities markets or dealing with physical goods.

• Collateral Security

  The ETC is backed by contracts with counterparties, with the payment obligations supported by collateral. This collateral is marked to market daily, ensuring that the value is accurately reflected and providing a layer of security to the investors. The Bank of New York Mellon holds the collateral in pledge accounts, offering an added level of safety by involving a reputable custodian in the process. Information about the collateral held is transparently available for investors.