At a glance
FCG charges 0.59% a year, above the 0.43% average of the 8 funds most like it (the 6th cheapest of 9). It has $589.7M in assets, the 3rd largest of that group; it paid 2.04% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +46.7% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned +10.6% a year. At its worst it fell 58.5% in the 2020 crash (S&P 500: 33.7%) and 33.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 44 months after the lows. Its ten largest positions make up 42.2% of the fund, out of 43 in all.
The short version
First Trust Natural Gas ETF (FCG) is an index fund. It tracks the Nasdaq FactSet Natural Gas Index, which holds about 40 U.S.-listed oil and gas producers with large natural gas reserves, plus pipeline partnerships. Unlike most similar funds, it sets aside a fixed 15% for master limited partnerships (MLPs). It costs 0.59% a year, above the 0.43% average of similar funds. It has also swung hard, falling 97.2% from June 2008 to March 2020.
Price history
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FCG +46.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FCG official prospectus, to Dec 31, 2025 | — | -2.16% | — | +25.01% | +3.12% | -5.85% |
| FCG price data to Oct 27, 2026 | +40.4% | +46.7% | +10.6% | +15.1% | +5.3% | -3.9% |
- Over the year to Oct 27, 2026, FCG returned +46.7%, 9th of 9 among similar funds.
- Its 5-year annualized return was +15.1% and its 10-year +5.3%.
- In the 2020 COVID crash it fell 58.5% and regained its old high 2.5 months after the low.
- Its worst full calendar year was 2015 (-59.0%); its best was 2021 (+98.5%).
- The deepest fall in its price history was 97.2% (Jun 18, 2008 to Mar 23, 2020), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +40.4% | — |
| 2025 | -2.2% | -2.16% |
| 2024 | +4.2% | +3.98% |
| 2023 | +2.5% | +2.55% |
| 2022 | +47.3% | +47.27% |
| 2021 | +98.5% | +98.69% |
| 2020 | -23.1% | -23.22% |
| 2019 | -15.7% | -15.87% |
| 2018 | -34.8% | -34.77% |
| 2017 | -11.4% | -11.53% |
| 2016 | +19.5% | +19.48% |
| 2015 | -59.0% | — |
| 2014 | -42.0% | — |
| 2013 | +24.9% | — |
| 2012 | -13.3% | — |
| 2011 | -7.2% | — |
| 2010 | +12.3% | — |
| 2009 | +50.1% | — |
| 2008 | -46.4% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 59.7% over that stretch · deepest drop along the way 73.6%, not recovered by the end of the data |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 58.5% over that stretch · deepest drop along the way 58.5%, back to its old high 2.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 45.1% over that stretch · deepest drop along the way 33.3%, back to its old high 43.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.4900 | |
| 2025 | $0.6800 | +1.5% |
| 2024 | $0.6700 | -15.2% |
| 2023 | $0.7900 | +5.3% |
| 2022 | $0.7500 | +150.0% |
| 2021 | $0.3000 | -11.8% |
| 2020 | $0.3400 | -2.9% |
| 2019 | $0.3500 | +66.7% |
| 2018 | $0.2100 | -40.0% |
| 2017 | $0.3500 | -18.6% |
| 2016 | $0.4300 | -60.9% |
| 2015 | $1.1000 | +37.5% |
| 2014 | $0.8000 | +128.6% |
| 2013 | $0.3500 | -26.3% |
| 2012 | $0.4750 | +18.7% |
| 2011 | $0.4000 | +33.3% |
| 2010 | $0.3000 | -14.3% |
| 2009 | $0.3500 | -53.3% |
| 2008 | $0.7500 |
What's inside
As of Jun 30, 2026, the fund held 43 securities; the ten largest made up 42.17% of assets.
| Holding | Weight | |
|---|---|---|
| WESTERN MIDSTREAM PARTNERS LP | 4.91% | |
| HESS MIDSTREAM LP | 4.83% | |
| EOG RESOURCES INC | 4.50% | |
| CONOCOPHILLIPS | 4.33% | |
| DIAMONDBACK ENERGY INC | 4.03% | |
| EQT CORP | 4.02% | |
| DEVON ENERGY CORP | 3.97% | |
| EXPAND ENERGY CORP | 3.96% | |
| OCCIDENTAL PETROLEUM CORP | 3.87% | |
| PERMIAN RESOURCES CORP | 3.75% | |
| OVINTIV INC | 3.57% | |
| ANTERO RESOURCES CORP | 3.50% | |
| APA CORP | 3.29% | |
| RANGE RESOURCES CORP | 3.29% | |
| MATADOR RESOURCES COMPANY | 3.09% |
By country
United States 95.21%Canada 4.42%Australia 2.63%By asset type
Stocks 99.9%RA 2.36%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $129.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.07%, -9.05%, -6.19%.
How it works
FCG tracks the Nasdaq FactSet Natural Gas Index, which Nasdaq builds and maintains. The fund normally puts at least 90% of its assets in the index's securities and tries to match the index's performance before fees. To qualify, a company must list on a U.S. exchange and belong to one of two groups. Midstream businesses (natural gas pipelines and storage, or gathering and processing) must be master limited partnerships, or MLPs. An MLP is a partnership whose units trade like stocks. Exploration and production companies must have natural gas make up at least 30% of their proved reserves, meaning the oil and gas they expect to recover profitably. Royalty trusts are excluded.
The index includes every eligible operating company plus the 10 largest MLPs by the market value of their freely traded shares. It gives 15% of its weight to the MLPs and 85% to operating companies. Within each group, weights depend on company size and trading activity, with liquidity limits and a 4.5% cap on any one holding. The index rebalances every quarter, and the April 2026 prospectus reported portfolio turnover of 31%. Weights drift between rebalances: as of June 30, 2026, Western Midstream Partners was 4.9% of the fund and Hess Midstream was 4.8%.
The fund uses no leverage and held no derivatives as of June 30, 2026. Because the index holds only energy companies, the fund is concentrated in one sector.
What it really costs
- FCG charges 0.59% a year, versus an average of 0.43% for the similar funds below (6th of 9, cheapest first).
- Of that, 0.4% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
It holds only energy producers and pipelines, has lost more than half its value several times, and costs more than similar funds, so it works as a small add-on rather than a foundation.
FCG offers concentrated exposure to natural gas and oil companies, which sometimes move differently from the broad market. During the 2022 bear market it gained 45.1%. Even so, a 33.3% drop in mid-2022 took about 43.5 months to recover. In other crises it fell with the market, and harder: 73.6% from June 2008 to March 2009, and 58.5% in early 2020, a loss it regained in about 2.5 months. Its worst calendar year was 2015, with a 59% loss. Its deepest drop, 97.2% from June 2008 to March 2020, had not been recovered as of October 27, 2026. Anyone who had to sell during such stretches would lock in steep losses.
Income is modest. The trailing yield was 2.04% as of October 27, 2026, paid quarterly. The 0.59% expense ratio is above the 0.43% peer average. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, targeted position in U.S. natural gas producers and pipeline MLPs, with the MLP slice set at 15% of the index.
- Those who prefer spread-out weights: the index caps holdings at 4.5%, and the top 10 were 42% of assets as of June 30, 2026.
- Holders who can ride out big swings, such as the 58.5% drop in early 2020, and won't need to sell during slumps.
Look elsewhere if
- Cost-focused investors: the 0.59% expense ratio compares with 0.35% for XOP and 0.084% for Fidelity's FENY.
- Retirees who may need to sell in bad years: FCG fell 97.2% from June 2008 to March 2020 and hadn't recovered by October 27, 2026.
- Those wanting pure natural gas exposure: producers qualify once gas is 30% or more of their reserves, so oil also drives returns.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FCG this fund | — | 0.59% | $589.7M | +46.7% | +10.6% |
| PXE Invesco Energy Exploration & Production ETF | 63% | 0.63% | $84.7M | +57.9% | +14.1% |
| XOP SPDR S&P Oil & Gas Exploration & Production… | 55% | 0.35% | $2.91B | +59.0% | +14.2% |
| FXN First Trust Energy AlphaDEX Fund | 46% | 0.61% | $379.1M | +58.5% | +15.6% |
| OILT Texas Capital Texas Oil Index ETF | 45% | 0.35% | $12.0M | +64.5% | — |
| IEO iShares U.S. Oil & Gas Exploration & Produc… | 44% | 0.4% | $516.1M | +67.3% | +18.3% |
| FTXN First Trust Nasdaq Oil & Gas ETF | 36% | 0.6% | $180.7M | +57.0% | +16.5% |
| RSPG Invesco S&P 500 Equal Weight Energy ETF | 32% | 0.4% | $573.6M | +56.1% | +19.7% |
Questions investors ask
Does FCG pay dividends?
Yes, FCG pays distributions every quarter. Over the 12 months through October 27, 2026, it paid about $0.66 per share, a trailing yield of 2.04%. The payout comes from the dividends and partnership distributions of the energy companies and MLPs it holds. So it can rise or fall with energy prices and company profits. For a fund with swings as large as FCG's, a 2% yield is modest.
What's the difference between FCG and XOP?
XOP costs less and is much larger. XOP charges 0.35% a year against FCG's 0.59%. As of June 30, 2026, XOP held about $2.9 billion and FCG about $590 million. About 55% of their holdings overlap. FCG requires producers to hold at least 30% of their reserves in natural gas, and its index gives MLPs 15%. For the year through October 27, 2026, XOP returned 59% and FCG 46.7%. Invesco's PXE overlaps with FCG even more, at 63%.
Is FCG a good long-term investment?
Its long-term record has been weak overall, despite some strong stretches. According to its prospectus, FCG returned an average of 3.12% a year over 10 years and lost an average of 5.85% a year since its 2007 launch, both through December 31, 2025. Its five-year average was much stronger, at 25.01% a year, helped by gains of 98.69% in 2021 and 47.27% in 2022. Its results depend heavily on energy prices, which no one can predict.
Does FCG only hold natural gas companies?
No. An exploration company qualifies once natural gas makes up 30% or more of its proved reserves, so a company with most of its reserves in oil can still be included. As of June 30, 2026, its largest holdings included EOG Resources, ConocoPhillips, Diamondback Energy, EQT, Devon Energy and Occidental Petroleum. Pipeline partnerships such as Western Midstream Partners and Hess Midstream make up the MLP slice, which the index sets at 15%.
How volatile is FCG?
Very volatile. Volatility measures how widely returns swing, and FCG's was 27.7% a year over the three years through October 27, 2026. According to the prospectus, its worst quarter was a 65% loss in early 2020, and the next quarter brought an 81.18% gain. It lost 34.77% in 2018 and 59% in 2015. Its deepest drop, 97.2% from June 2008 to March 2020, had not been recovered as of October 27, 2026.