WisdomTree, a global financial products provider, has announced the launch of the WisdomTree European Natural Gas ETC (TTFW), which has begun trading on the London Stock Exchange, Borsa Italiana, and Börse Xetra. According to the asset manager, the fund aims to track the performance, before fees and expenses, of the BNP Paribas Rolling Futures W0 TZ Index, which provides exposure to natural gas in the Dutch Title Transfer Facility (TTF) and measures the total return based on the underlying ICE Dutch TTF Gas Futures contracts.
“The war between Russia and Ukraine that began in 2022 profoundly altered the natural gas markets in Europe. Natural gas flows through pipelines from Russia to Western Europe, once the main source of natural gas for the region, are now insignificant. Western Europe is much more reliant on Norwegian pipeline flows and global liquefied natural gas (LNG) imports. In its energy transition, the European Union will continue to depend on natural gas. Considering this, there will be periodic sharp increases in natural gas prices in Europe, as the fuel is used to offset renewable energy deficits. The Dutch Title Transfer Facility (TTF) is the most representative and liquid natural gas benchmark in Europe and therefore the best tool for tactical exposure to these price jumps and for hedging purposes,” explained Nitesh Shah, Head of Commodities & Macroeconomic Research Europe at WisdomTree.
The asset manager highlights that this launch complements its range of natural gas products, which offer exposure to U.S. Henry Hub natural gas, the most well-known gas trading hub in the U.S. This includes the WisdomTree Natural Gas (NGAS), a euro-hedged alternative, as well as short and leveraged exposures. These products allow investors to express both their short-term tactical view and long-term strategic view.
“We have a strong track record of innovation and launching pioneering exposures in the market across all asset classes. Investors expect WisdomTree to provide exposures they cannot find elsewhere, and that’s exactly what we’ve done with this ETC. This launch strengthens our leadership position in the commodity ETP market and offers investors an additional tool to navigate a dynamic market environment,” emphasized Alexis Marinof, Head of Europe at WisdomTree.
This new fund is passported for sale in Germany, Austria, Belgium, Denmark, Spain, Finland, France, Ireland, Italy, Luxembourg, Norway, the Netherlands, Poland, the United Kingdom, and Sweden.
For Gabriela Huerta