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First Trust Natural Gas ETF (FCG) Hits a New 52-Week High
First Trust Natural Gas ETF (FCG - Free Report) is probably a suitable pick for investors looking for momentum. The fund just hit a 52-week high and is up 212.5% from its 52-week low price of $5.78/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
FCG in Focus
The fund's investment objective is to seek investment results that generally correspond to the price and yield, before fees and expenses, of an equity index called the ISE-Revere Natural Gas Index. It has AUM of $375.6 million and charges 0.60% in annual fees.
Why the Move?
The cold wave from the Arctic region accelerates electricity demand across the United States, focusing on natural gas. Considering the scenario, forecasts of colder-than-expected temperatures in the United States will drive natural gas prices.
U.S. natural gas futures have risen to a seven-year high due to the supply crunch heading into the winter heating season. These factors are making funds like FCG more attractive.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 156.13, which gives cues of a further rally.