The Natural Gas ETF Nobody Is Talking About

When it comes to natural gas ETFs, two choices dominate the landscape: The U.S. Natural Gas Fund
and the First Trust ISE-Revere Natural Gas ETF
. The iShares Dow Jones US Oil & Gas Exploration & Production Index Fund
is another name worth mentioning. By now, UNG's faults are well-documented and that sends most investors to FCG and IEO for natural gas equity exposure, but there's another ETF worth taking a look at when it comes natural gas: The OOK ETF
, also known as the "Oklahoma ETF." The Professor has mentioned OOK a few times in the past and this ETF is still less than a year old. OOK tracks a swath of Oklahoma-based companies, so it is not strictly an energy ETF, but energy names do account for almost 60% of the ETF's weight. As oil and natural gas prices have perked up in the past month, OOK has performed basically in line with FCG and IEO and throttled UNG. OOK will get you exposure to natural gas producers like Chesapeake
and Devon
, but the ETF is also a nifty to get involved high-yielding master limited partnerships like Magellan Midstream
and Oneok Partners
. OOK looked like a gimmick ETF when it first came to market in November, but with natural gas looking strong, investors might just want to have a look at the ETF before the all-time high at $35.40 is taken out.
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