WisdomTree today (17 September) listed the WisdomTree European Natural Gas ETC (TTFW) on the London Stock Exchange, Borsa Italiana and Börse Xetra with a management expense ratio (MER) of 0.49%.
TTFW seeks to track the performance, before fees and expenses of the BNP Paribas Rolling Futures W0 TZ Index (the ‘Index’). The Index is designed to provide investors with exposure to gas traded on the Dutch Title Transfer Facility (TTF), which is the most liquid European gas trading hub and the benchmark for European gas prices. The Index measures total return performance based on the underlying ICE Dutch TTF Gas Futures contracts.
Nitesh Shah, head of commodities & macroeconomic research, Europe, WisdomTree, said: “The Russia-Ukraine war that started in 2022 profoundly changed the natural gas markets of Europe. Pipeline flows of natural gas from Russia to Western Europe, which used to be the main source of natural gas for the region, are now negligible. Western Europe is far more reliant on Norwegian pipeline flows and global liquified natural gas (LNG) imports.
“As the European Union navigates an energy transition, it will still be reliant on natural gas. With that in mind, there will be periodic sharp increases in European natural gas prices as the fuel is used to make up shortfalls in renewables. The Dutch Title Transfer Facility is the most representative and liquid natural gas benchmark in Europe and thus the best tool for tactical exposure to these price jumps and for hedging purposes.”
WisdomTree has an 85% market share in unleveraged natural gas exchange-traded products (ETPs) in Europe. WisdomTree European Natural Gas (TTFW) complements WisdomTree’s range of natural gas products which offer exposure to US Henry Hub natural gas, representing the most widely known gas trading hub in the US. This includes the WisdomTree Natural Gas (NGAS), a euro currency hedged alternative, as well as short and leveraged exposures. These products allow investors to express both short-term tactical and long-term strategic views.
Alexis Marinof, head of Europe, WisdomTree, added: “We have a rich heritage of innovation and launching ‘first to market’ exposures across asset classes. Investors expect WisdomTree to deliver the exposures they are unable to find elsewhere, and that’s exactly what we have done with this ETC. This launch strengthens our market-leading position in commodity ETPs and gives investors an extra tool at their disposal to navigate a dynamic market environment.”
