American consumers are furious about soaring oil, gasoline, and natural gas prices. I don’t blame them. But looking at the big picture, the US-Israeli conflict with Iran is a boon for leading US industries and companies. That’s why you should take a look at the Global X US Natural Gas ETF (LNGX), suggests Sean Brodrick, editor at Weiss Ratings Daily.
US gas remains far cheaper than in import-reliant markets like Europe and Asia. We benefit from domestic shale production, while others face LNG premiums and geopolitical risks. Europe has seen its nat gas prices rise by 35% or more. Important Asian markets have seen nat gas prices soar as much as 50%!
In December — the latest EIA data available — US liquefied natural gas exports soared to 569.3 billion cubic feet. That’s up 39% from the same month a year earlier. So, US natural gas exporters are one industry that will rack up bigger gains the longer this conflict drags on.
LNGX is an ETF just launched in October to track the US natural gas industry. More specifically, it tracks the entire domestic natural gas and natural gas liquids value chain by holding a basket of 34 stocks. Its expense ratio is just 0.45%.
You can see that LNGX is taking off, heading higher even as the major indices struggle. LNGX should stay strong for a while — to the end of the war and potentially beyond — as US nat gas manufacturers underprice global competitors.
There will be ups and downs. But pullbacks can be bought.
