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Written by Matt Hougan
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Monday, 05 October 2009 10:29 | Related ETFs:
FCG
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Jefferies, the middle-market investment bank, has filed papers with the Securities and Exchange Commission for its first two exchange-traded funds.
The filing, in partnership with ALPS, covers two new products focused on the commodity equity space:
- Jefferies Natural Gas Equity ETF
- Jefferies Energy Wildcatters Equity ETF
The natural gas ETF will invest in North American companies that derive at least 50 percent of their revenues from the exploration and production of natural gas. Companies will be weighted, in part, by the amount of proven natural gas reserves they hold on their books.
When it launches, the fund will compete head-to-head with the First Trust ISE-Revere Natural Gas ETF (NYSEArca: FCG), a fund that holds an equally weighted portfolio of natural-gas-producing equities. As of Oct. 2, FCG had $328 million in assets.
The “Wildcatters” ETF will invest in North American small-cap companies that derive at least 75 percent of their annual revenues from the exploration and production of oil and natural gas. Companies must have a market capitalization of at least $200 million, but not more than $2 billion, to enter into the ETF’s underlying index.
It will be the first small-cap energy producers ETF when it launches.
The prospectus is available here.
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