The Best ETF For Nat Gas MNA? (IEO)
Natural gas stocks and ETFs got a big boost on Monday with news of Exxon Mobil's $31 billion acquisition of XTO Energy (NYSE: XTO) and the purchase has served to fuel speculation above what natural gas firms may be acquisition targets.
Names such as Anadarko Petroleum (NYSE: APC), Devon Energy (NYSE: DVN) and EOG Resources (NYSE: EOG) surfaced as a potential targets in a variety of press reports. And if you want one-stop shopping for exposure to all of those names and XTO, the ETF Professor recommends the iShares Dow Jones US Oil & Gas Exploration Index (NYSE: IEO).
All four of the aforementioned natural gas stocks are among IEO's top 10 holdings and IEO is the ETF with the highest weight to XTO. With more oil companies looking to increase their natural gas exposure, IEO looks like a solid idea here.
