First Trust Ise-Revere Natural Gas (FCG)

[Timothy Smith]

The fund's 10 major holdings are $KWK $PVA $UPL $BBG $COG $SWN $XCO $EQT $QEP $CRK. Stocks included in FCG have strong future growth prospects. Ultra Petroleum (UPL) has a strong revenue base, good reserve replacement ratio, and efficient costing.

The use of commodity hedging also bodes well for the company. The company has hedged around 70% of its total annual expected output at an average price of $4.42/MMbtu. Penn Viginia (PVA) has the second highest proportion in the fund. The stock has attractive valuations and can growth through organic channels.

It is trading at P/S of 0.92x, at a discount when compared to Cabot Oil & Gas Corporation (COG), Chesapeake Energy Corporation (CHK) and EQT Corporation (EQT), with P/S of 8.86x, 1x and 5.4x, respectively.