Listed Funds Trust (LNGG)LNGG

Roundhill Alerian LNG ETF (NYSEARCA: LNG) Overview

Profile:

• Primary Focus: LNG (Liquified Natural Gas) infrastructure and midstream companies
• Asset Allocation: Primarily invested in US and international LNG infrastructure companies (e.g., Cheniere Energy, Tellurian)
• Investment Strategy: Passive replication of the Alerian Midstream Energy Infrastructure Index

Objective:

• Track the performance of publicly traded companies involved in global liquefied natural gas storage and transportation infrastructure

Issuer:

• Company: Roundhill Investments
• Reputation and Reliability: Relatively young asset management firm (founded in 2021) but backed by established investors like KKR and BlackRock
• Management: Experienced leadership team with expertise in ETF investing and alternative assets

Market Share:

• Approximately 50-60% market share in the LNG infrastructure ETF space (as of October 2023)

Total Net Assets:

• Approximately $300 million

Moat:

• First mover advantage in the LNG infrastructure ETF space
• Provides investors with a diversified exposure to a specific and niche sector
• Transparent methodology for index tracking

Financial Performance:

• Since inception (March 2021), LNG has delivered a total return of around 30%
• Outperformed its benchmark index (Alerian Midstream Energy Infrastructure Index) by approximately 5%
• Demonstrated resilience during market volatility in 2022

Growth Trajectory:

• Increasing global demand for LNG due to energy security concerns and environmental regulations
• Projected strong growth potential for the LNG infrastructure sector
• Potential for ETF's assets to grow as the market matures

Liquidity:

• Average daily trading volume of around 500,000 shares
• Tight bid-ask spread, indicating high liquidity and low trading costs

Market Dynamics:

• Rising energy prices
• Geopolitical tensions
• Technological advancements in LNG production and transportation
• Increasing environmental awareness

Competitors:

• iShares Global Clean Energy ETF (ICLN) - broader clean energy exposure, 15% LNG holdings
• Invesco DB Commodity Index Tracking Fund (DBC) - broader commodity exposure, 2% LNG holdings

Expense Ratio:

• 0.60%

Investment Approach and Strategy:

• Passively tracks the Alerian Midstream Energy Infrastructure Index
• Invests in a diversified basket of publicly traded companies involved in LNG infrastructure
• Aims to provide long-term capital appreciation

Key Points:

• First and dominant LNG infrastructure ETF
• Provides diversified exposure to a growing sector
• Strong historical performance and growth potential
• High liquidity and low trading costs

Risks:

• Volatility: LNG is a relatively volatile sector due to its exposure to energy markets and geopolitical events.
• Market Risk: The ETF's performance is directly tied to the performance of LNG infrastructure companies, which can be affected by factors like global energy demand, regulations, and competition.
• Concentration Risk: The ETF primarily invests in US companies, which could expose investors to specific country risk.

Who Should Consider Investing:

• Investors seeking long-term exposure to the LNG infrastructure sector
• Investors looking for a relatively high-growth investment opportunity
• Investors comfortable with moderate volatility

Fundamental Rating Based on AI (1-10)**:

7.5

• Strengths: First-mover advantage, strong historical performance, high liquidity, growth potential, experienced management team.
• Weaknesses: Relatively high expense ratio, concentrated portfolio, exposed to sector-specific risks.
• Overall: This AI-based rating considers various factors, including financial strength, market position, growth potential, and risk profile. The ETF's strong performance, liquidity, and unique focus on a growing sector are significant positives, but the relatively high expense ratio and concentration risks are aspects to consider.

Resources and Disclaimers:

• ETF Website: https://roundhillinvestments.com/etfs/lng/
• Morningstar: https://www.morningstar.com/etfs/arcx/lng
• ETF Database: https://etfdb.com/etf/lng/roundhill-alerian-lng-etf/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.

Please note: This information is accurate as of October 2023.