ETF Research and Analysis

by John Gabriel
Suitability
First Trust ISE-Revere Natural Gas FCG should be treated as a complementary tactical tool to be deployed around the edges of a broadly diversified portfolio. Investors with a positive outlook for the natural gas industry   Read more 

Bull Case

Morningstar analysts are bullish on domestic natural gas and expect Henry Hub gas prices of $5.40 per mcf over the long term.
The incredible reserves that have been unlocked because of advances in drilling technology have ignited speculation about the potential for natural gas to become a primary energy source for the U.S.
Development of natural-gas-refueling infrastructure could spur increased use of natural-gas-powered vehicles and create a new source of demand. Read more 

Bear Case

Major barriers preventing natural gas from becoming a viable alternative for fueling on-highway trucks are the cost premium and limited size offering of natural gas engines.
Energy exploration and production is a challenging industry where firms must balance capital-allocation decisions and exploration uncertainty while paying heed to macroeconomic factors, commodity price volatility, and regulatory scrutiny.
Natural gas demand is highly cyclical and influenced by unpredictable weather. Read more 

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