Samsung Active Asset Management Launches KoAct US Natural Gas Infrastructure Active ETF, which is Benchmarked Against the Solactive US Natural Gas Infrastructure Index
Solactive is pleased to announce another collaboration with Samsung Active Asset Management. The KoAct US Natural Gas Infrastructure Active ETF, linked to the Solactive US Natural Gas Infrastructure Index, is designed to provide investors with broad exposure to the US natural gas value chain, reflecting opportunities in energy transition and energy security.
The natural gas sector acts as a pivotal player in balancing global energy needs while supporting sustainability goals. As a “bridge fuel”, natural gas has lower carbon emissions compared to other fossil fuels, making it an essential alternative to address the gap between rising energy consumption and environmental targets.[1] For example, the US Energy Information Administration reported that gas consumption in the US reached a record 90 billion cubic feet per day in 2024, further indicating robust demand for natural gas. In a recent earnings report, TC Energy (an index constituent) said that North America’s rising demand was driven by higher LNG exports, retiring coal plants and growing consumption in data centers associated with artificial intelligence operations.[2] As such, the sector attracts substantial investment in infrastructure, such as pipelines and storage facilities, while being bolstered by a supportive regulatory framework.
The Solactive US Natural Gas Infrastructure Index aims to provide investors with transparent and comprehensive access to the US natural gas ecosystem. It is designed to track the performance of the top 25 US-listed companies active throughout the entire natural gas value chain. Utilizing a granular classification framework, the selection process includes sectors representing the upstream (exploration and production), midstream (transportation and storage) and downstream (distribution and manufacturing) areas of the industry. For diversification purposes, category weight caps and single security weight caps are also applied.
The ETF listed on 10 December 2024 on the Korea Stock Exchange (KRX) with the ticker code 497780.KS.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented:“We are delighted to expand our partnership with Samsung Active Asset Management. The natural gas sector continues to be at the forefront of the energy transition, and with the Solactive US Natural Gas Infrastructure Index, we provide a diversified and robust benchmark that allows investors to participate in the evolving dynamics of the sector. We look forward to future collaborations with KoAct, jointly bringing more investment products to market, which address the demographic, climate, and technological trends of tomorrow.”
James Oh, Manager in the ETF Solution Department at Samsung Active Asset Management, commented: “We are pleased to collaborate with Solactive on the KoAct US Natural Gas Infrastructure Active ETF, which is strategically focused on the gas value chain. We believe natural gas will play a crucial role as the greenest of fossil fuels while meeting the rising demand for electricity. By making monthly distributions to investors, we aim to provide both growth potential and reliable income through this ETF.”
[1] The Role of Gas in Today’s Energy Transitions
[2] TC Energy forecasts higher 2025 core profit on natgas, electricity demand