WisdomTree launches “world’s first” European Natural Gas ETC

Asset manager WisdomTree has launched the world’s first European Natural Gas exchange traded commodity (ETC), expanding its extensive range of commodity exchange-traded products in Europe.

The new product, WisdomTree European Natural Gas ETC (TTFW), was listed on the London Stock Exchange, Borsa Italiana, and Börse Xetra on September 17, 2024, with a management expense ratio of 0.49%.

The offering is designed to track the performance of the BNP Paribas Rolling Futures W0 TZ Index, providing investors with exposure to gas traded on the Dutch Title Transfer Facility (TTF). TTF is Europe’s most liquid gas trading hub and serves as the benchmark for European gas prices. The index measures total return performance based on the underlying ICE Dutch TTF Gas Futures contracts, offering investors a way to tap into the dynamics of the European natural gas market.

WisdomTree holds an 85% market share in unleveraged natural gas ETPs in Europe, and the launch of TTFW has enhanced its suite of natural gas products. These include exposure to US Henry Hub natural gas through the WisdomTree Natural Gas product, which offers euro-currency-hedged alternatives and leveraged and short exposures for tactical and strategic investment strategies.

The ETC is passported for sale in 15 European countries, including Austria, France, Germany, Italy and the UK.

Half of UK asset owners invest in natural capital or plan to

Nitesh Shah, head of commodities and 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  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.”

Alexis Marinof, head of Europe, WisdomTree, added: “We have a heritage of innovation and launching ‘first to market’ exposures across asset classes. 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.”