WCAT joins the United States Natural Gas ETF (UNG) and the First Trust ISE-Revere Natural Gas Index Fund (FCG) as a play on natural gas prices. However WCAT will invest primarily in small cap firms. This will probably be a more volatile fund as compared to the larger cap gas ETFs on the market.

The fund comes with an expense ratio of .65% and currently has 56 companies in its portfolio. The top 3 holdings currently in the fund are Forest Oil, Encore Acquisition and St. Mary Land & Exploration. Each of these stocks makes up roughly 5% of the funds portfolio.

According to the prospectus, Wildcatters Exploration & Production Equity ETF will provide exposure to stocks listed on the United States and Canadian stock exchanges. These companies are engaged in the production and distribution of the oil and gas sectors. WCAT will try to replicate (before fees and expenses) the price and yield performance of the Thomson Reuters/Jefferies CRB Wildcatters Energy E&P Equity Index.

This fund will invest in companies involved with natural gas as opposed to UNG, which is a pure play on natural gas futures.

Small and mid-cap companies can be very volatile, but can also give you a big return on your investment. The natural gas market has been growing over the last few years. Exxon Mobil is making a move into natural gas with its purchase of XTO Energy in December of 2009.

Hopefully as natural gas grows, larger companies will be looking at small companies in the Wildcatters Exploration & Production Equity ETF as possible acquisitions. Do your research before investing.

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• Natural Gas Futures, How They Effect Natural Gas ETFs
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• Why you should trade the Natural Gas ETF over futures and index funds.
• Natural Gas ETF frequently asked questions (FAQ)