KB Asset Management to launch KB RISE US Natural Gas Value Chain ETF tracking the Solactive index
Solactive has announced the upcoming launch of KB RISE US Natural Gas Value Chain ETF, tracking the Solactive US Natural Gas Value Chain Index.
The firm writes that this ETF offers investors a comprehensive approach to the US natural gas sector, providing exposure to companies operating across the entire natural gas value chain, from production to infrastructure and export.
Solactive writes that as natural gas plays an increasingly central role in the global energy transition, the sector continues to attract the attention of investors worldwide. In 2024, global gas demand is expected to increase by approximately 2.8 per cent, significantly outpacing the average growth rate for the decade, driven primarily by rising consumption in Asia.
With long-term LNG demand bolstered by global energy security concerns and decarbonisation efforts, investment in gas infrastructure, such as pipelines and LNG terminals, has accelerated, the firm says. The United States has made decade-long investments in LNG facilities, reaffirming the strategic importance of natural gas in energy portfolios.
The Solactive US Natural Gas Value Chain Index aims to capture the dynamic structure of this sector by identifying US-listed companies operating in three main categories: Production, Infrastructure, and Export. The companies are selected from the Solactive GBS North America All Cap Index and filtered according to strict liquidity and market capitalisation criteria. Using ARTIS, Solactive’s proprietary natural language processing technology, the index ranks companies according to their relevance to each segment. The firm writes that this methodology ensures diversified exposure by selecting the five top-ranked companies per segment and weighting them based on free-float market capitalisation, with segment allocations set at 20 per cent for Export, 50 per cent for Infrastructure, and 30 per cent for Production.
The ETF listed on 22 April 2025 on the Korean Stock Exchange with ticker code 36Z0001.KS.
Timo Pfeiffer, CMO at Solactive, says: “Our cooperation with KB Asset Management continues to grow. The Solactive US Natural Gas Value Chain Index provides investors with timely and relevant exposure to a critical component of the global energy mix by offering targeted exposure to the US natural gas value chain. In response to evolving market trends and investment objectives, we remain committed to providing innovative index solutions.”
Soojin Lee, Head of ETF Product Division at KB Asset Management, says: “It is our pleasure to extend our partnership with Solactive by launching the KB RISE US Natural Gas Value Chain ETF. The ETF is designed to seek performance in both rising and falling natural gas price environments by structuring the natural gas value chain based on business revenue structures and diversifying across key companies in LNG exports (20 per cent), production (30 per cent), and infrastructure (50 per cent). We hope this ETF serves as a valuable tool for investors seeking strategic and balanced exposure to the natural gas industry.”