Should You Invest in the First Trust Natural Gas ETF (FCG)?

Core Insights - The First Trust Natural Gas ETF (FCG) is a passively managed ETF launched on May 8, 2007, designed to provide broad exposure to the Energy - Natural Gas segment of the equity market [1] - The Energy - Natural Gas sector is currently ranked 16th out of 16 in the Zacks Industry classification, placing it in the bottom 0% [2] Fund Overview - FCG is sponsored by First Trust Advisors and has assets exceeding $334.37 million, categorizing it as an average-sized ETF in its segment [3] - The ETF aims to match the performance of the ISE-Revere Natural Gas Index, which consists of companies significantly involved in natural gas exploration and production [4] Cost Structure - The annual operating expense ratio for FCG is 0.57%, which is competitive with most peer products [5] - The ETF has a 12-month trailing dividend yield of 2.87% [5] Sector Exposure and Holdings - Approximately 97.20% of FCG's portfolio is allocated to the Energy sector, providing diversified exposure while minimizing single stock risk [6] - Eog Resources, Inc. (EOG) constitutes about 4.74% of total assets, with Conocophillips (COP) and Occidental Petroleum Corporation (OXY) also among the top holdings; the top 10 holdings represent about 42.35% of total assets [7] Performance Metrics - As of July 23, 2025, FCG has experienced a loss of approximately -4.82% year-to-date and -11.20% over the past year [8] - The ETF has traded within a range of $19.37 to $27.09 over the last 52 weeks, with a beta of 0.89 and a standard deviation of 30.11% over the trailing three-year period, indicating a higher risk profile [8] Investment Alternatives - FCG holds a Zacks ETF Rank of 5 (Strong Sell), suggesting it may not be a suitable option for investors seeking exposure to the Energy ETFs segment [9] - There are better-performing ETFs available in the same space that investors may consider [9]