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LNGX - ETF AI Analysis

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LNGX

Global X U.S. Natural Gas ETF (LNGX)

Rating:72Outperform
Price Target:
LNGX, the Global X U.S. Natural Gas ETF, has a solid overall rating, suggesting it holds a generally strong mix of U.S. natural gas–related companies with room for some improvement. High-quality holdings like Permian Resources, Devon Energy, Diamondback Energy, and Oneok support the fund’s rating through robust financial performance, positive earnings calls, and operational efficiency, though they still face valuation questions and market uncertainty tied to commodity prices. On the other hand, positions such as Ovintiv, Occidental Petroleum, and Antero Resources introduce more caution due to bearish or mixed technical signals, leverage and valuation concerns, and broader volatility, while the fund’s focus on a single commodity-related sector is the main risk if natural gas markets weaken.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past few months, indicating positive recent momentum.
Solid Top Holdings
Many of the largest positions, including several well-known energy producers, have delivered strong year-to-date results that support the fund’s performance.
Targeted Natural Gas Exposure
The fund offers focused exposure to U.S. natural gas companies, which can benefit investors who want to specifically tap into this segment of the energy market.
Negative Factors
High Sector Concentration
Almost all of the ETF is invested in the energy sector, so its performance is highly sensitive to swings in energy and natural gas prices.
Limited Geographic Diversification
The portfolio is heavily tilted toward U.S. companies with only a small allocation to Canada, offering little protection if the North American energy market weakens.
Moderately High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

LNGX vs. SPDR S&P 500 ETF (SPY)

LNGX Summary

The Global X U.S. Natural Gas ETF (LNGX) follows the Global X U.S. Natural Gas Index, focusing on U.S.-listed companies involved in producing, transporting, and storing natural gas. It holds well-known energy names like Devon Energy and Occidental Petroleum, giving investors a simple way to invest in the natural gas theme and benefit from growing demand for cleaner-burning fuel and related infrastructure. Someone might consider this ETF for targeted energy exposure and diversification within their portfolio. However, it is heavily concentrated in energy stocks, so its price can swing sharply with natural gas prices and the broader energy market.
How much will it cost me?The Global X U.S. Natural Gas ETF (LNGX) has an expense ratio of 0.45%, meaning you’ll pay $4.50 per year for every $1,000 invested. This cost is slightly higher than average because the fund is sector-focused and tracks companies in the natural gas industry, which may require more specialized management. It’s important to consider this when evaluating your investment options.
What would affect this ETF?The LNGX ETF could benefit from increasing demand for cleaner energy alternatives like natural gas, as well as investments in infrastructure to support its distribution. However, it may face challenges from fluctuating natural gas prices, regulatory changes in the energy sector, or a shift in focus toward renewable energy sources. Its heavy reliance on U.S.-based energy companies makes it sensitive to domestic economic conditions and energy policies.

LNGX Top 10 Holdings

LNGX is a pure play on U.S. natural gas, with the fund’s fate largely tied to a tight cluster of exploration and production names. Permian Resources and Ovintiv have been the real workhorses this year, rising on strong operations and deal-making, giving the ETF much of its spark. Coterra, Devon, and Diamondback are also pulling their weight with steady to rising performance. On the flip side, Occidental and Antero have been more mixed, occasionally losing steam and reminding investors that this is a concentrated, commodity-sensitive U.S. energy bet.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Devon Energy12.93%$7.31M$55.87B55.62%
79
Outperform
EQT6.53%$3.69M$36.17B3.68%
76
Outperform
Expand Energy5.61%$3.17M$23.65B-13.83%
71
Outperform
Ovintiv5.14%$2.91MC$23.07B65.04%
60
Neutral
Permian Resources4.95%$2.80M$17.60B62.57%
81
Outperform
Diamondback4.46%$2.52M$57.48B49.90%
81
Outperform
Occidental Petroleum4.41%$2.49M$58.55B43.30%
67
Neutral
Antero Resources4.40%$2.48M$11.77B-2.89%
67
Neutral
DT Midstream4.34%$2.45M$15.18B45.17%
78
Outperform
Oneok4.30%$2.43M$58.06B13.25%
82
Outperform

LNGX Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
44.74
Negative
100DMA
41.75
Positive
200DMA
Market Momentum
MACD
0.20
Negative
RSI
50.28
Neutral
STOCH
72.98
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For LNGX, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 44.47, equal to the 50-day MA of 44.74, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 72.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LNGX.

LNGX Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$58.15M0.45%
72
Outperform
$84.82M0.60%
66
Neutral
$26.00M0.96%
64
Neutral
$15.19M0.35%
71
Outperform
$8.46M0.65%
70
Outperform
$7.03M0.59%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LNGX
Global X U.S. Natural Gas ETF
44.41
10.69
31.70%
PXI
Invesco DWA Energy Momentum ETF
FPWR
First Trust Eip Power Solutions Etf
OILT
Texas Capital Texas Oil Index ETF
TSES
Truth Social American Energy Security ETF
USNG
Amplify Samsung U.S. Natural Gas Infrastructure ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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