Is First Trust Natural Gas ETF (FCG) a Strong ETF Right Now?

Core Viewpoint - The First Trust Natural Gas ETF (FCG) is a smart beta ETF designed to provide broad exposure to the energy sector, specifically focusing on natural gas companies [1][5]. Fund Overview - FCG was launched on May 8, 2007, and is managed by First Trust Advisors [1][5]. - The fund has accumulated assets of over $349.35 million, positioning it as an average-sized ETF within the energy sector [5]. - FCG aims to match the performance of the ISE-Revere Natural Gas Index, which is an equal-weighted index of companies involved in natural gas exploration and production [5]. Cost and Expenses - The ETF has an annual operating expense ratio of 0.57%, which is competitive within its peer group [6]. - It offers a 12-month trailing dividend yield of 2.77% [6]. Sector Exposure and Holdings - Approximately 97.6% of FCG's portfolio is allocated to the energy sector, providing concentrated exposure [7]. - The top holding, Eqt Corporation (EQT), constitutes about 4.8% of the fund's total assets, with the top 10 holdings making up approximately 43.36% of total assets [8]. Performance Metrics - Year-to-date, FCG has experienced a loss of about -1.41%, and over the last 12 months, it is down approximately -8.13% as of July 14, 2025 [9]. - The fund has traded between $19.37 and $27.24 in the past 52 weeks [9]. Risk Assessment - FCG has a beta of 0.89 and a standard deviation of 30.27% over the trailing three-year period, indicating a higher risk profile compared to its peers [10]. - The fund holds about 41 positions, suggesting more concentrated exposure than other ETFs in the sector [10].