Amplify Samsung U.S. Natural Gas Infrastructure ETF (USNG) Second Quarter Commentary 2026

The Amplify Samsung U.S. Natural Gas Infrastructure ETF (USNG) seeks long-term capital appreciation by investing primarily in assets of U.S.-listed equity securities of natural gas companies. USNG is actively managed using the GARP (growth at a reasonable price) method to select companies believed to benefit from the U.S. natural gas infrastructure ecosystem across upstream, midstream, and downstream segments. 

The second quarter of 2026 reinforced the market's conviction that U.S. natural gas infrastructure is evolving from a traditional income-oriented sector into a secular growth industry. While broader equity markets experienced elevated volatility amid ongoing uncertainty surrounding monetary policy, trade negotiations, and geopolitical developments, companies positioned to benefit from expanding electricity demand and LNG infrastructure continued to outperform.

USNG ETF generated a +10.79% return (NAV) during the quarter. Performance was led by Bloom Energy (+123.4%), Solaris Energy Infrastructure (+42.62%), Kodiak Gas Services (+29.66%), and Archrock (+17.67%).

Data as of 6/30/26. Fund inception date: 5/19/2025. Total expense ratio is 0.59%. The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Click here for recent month end performance. Brokerage commissions will reduce returns. NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The closing price is the last price at which the fund traded.

Extraordinary performance is attributable in part to unusually favorable market conditions and may not be repeated or consistently achieved in the future.

Top 10 Holdings (as of 6/30/26)

Holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell a security.

Bloom Energy was the largest contributor following accelerating commercial adoption of its solid oxide fuel cell technology as hyperscale data center operators increasingly prioritized reliable on-site power generation. As utility interconnection delays continued to lengthen across many U.S. markets, investors became increasingly confident that distributed natural gas-powered generation will play an essential role in supporting AI infrastructure. Bloom's expanding order backlog and improving profitability further strengthened investor confidence in the company's long-term growth trajectory.

Within the natural gas transmission segment, compression and production service companies continued to benefit from sustained increases in natural gas volumes. Kodiak Gas Services and Archrock outperformed as demand for compression equipment remained robust across the Permian and Haynesville basins, supported by rising associated gas production and continued investment in pipeline and LNG infrastructure. Higher equipment utilization, pricing power, and long-term contract visibility further improved earnings expectations across the compression industry.

Solaris Energy Infrastructure also delivered strong performance as investors increasingly recognized its growing exposure to distributed power infrastructure and mobile natural gas solutions supporting both oilfield operations and emerging data center applications. The company's positioning at the intersection of energy infrastructure and power generation continues to differentiate its long-term growth profile.

From a macroeconomic perspective, the second quarter was characterized by moderating inflation, expectations for eventual monetary easing, and resilient U.S. economic activity despite continued policy uncertainty. Although interest rates remained elevated, investors increasingly favored companies with visible long-duration cash flow growth over purely defensive yield characteristics. Energy infrastructure companies benefited from improving capital discipline, stable balance sheets, and growing confidence that natural gas demand growth is becoming increasingly structural rather than cyclical.

The industry's long-term investment case also strengthened as utilities, independent power producers, and technology companies accelerated plans to secure dedicated natural gas-fired generation for large-scale AI campuses. Electricity demand forecasts continued to move materially higher, driven by data center construction, industrial reshoring, and electrification trends. With renewable generation alone unable to satisfy baseload reliability requirements, natural gas remained the preferred dispatchable fuel capable of delivering continuous, scalable power while complementing intermittent renewable resources.

Meanwhile, construction progress across multiple U.S. LNG export facilities continued largely on schedule, supporting expectations for sustained growth in domestic natural gas demand over the coming years. As additional export capacity approaches commercial operation, infrastructure owners across gathering, processing, compression, transmission, and storage are expected to benefit from structurally higher utilization rates and increasing throughput volumes.

Outlook: Multiple structural catalysts remain intact for the second half

Looking ahead to the second half of 2026, we remain constructive on the outlook for U.S. natural gas infrastructure. While short-term market volatility may persist as investors monitor Fed’s monetary policy, oil price movement along with the war in the middle east, we believe the industry's primary performance drivers remain fundamentally intact and increasingly independent of the broader economic cycle.

The most important catalyst continues to be the rapid expansion of AI-related electricity demand. Major technology companies continue to announce significant investments in hyperscale data centers, while utilities are revising load forecasts upward to reflect unprecedented growth in power consumption. Given persistent transmission constraints and lengthy grid interconnection timelines, natural gas-fired generation remains the most practical solution capable of delivering reliable, around-the-clock electricity. We expect companies participating across the natural gas value chain—including infrastructure owners, compression providers, and distributed power suppliers—to remain primary beneficiaries of this trend.

We also expect LNG exports to become an increasingly important source of incremental demand. Multiple export projects are scheduled to continue ramping toward commercial operation over the next several quarters, tightening the connection between domestic natural gas production and global energy markets. This should support higher pipeline utilization, increased compression demand, and additional investment throughout the midstream sector.

In addition, we believe the market is beginning to recognize that energy infrastructure companies are no longer valued solely for their dividend yields. Instead, investors are increasingly assigning growth-oriented multiples to businesses with direct exposure to AI infrastructure, power generation, and LNG expansion. We believe this valuation re-rating remains in its early stages.

While commodity price fluctuations and macroeconomic uncertainty may create periods of volatility, we believe companies with high-quality infrastructure assets, strong contractual cash flows, and strategic exposure to long-duration natural gas demand are well positioned to continue generating attractive shareholder returns. As natural gas becomes an increasingly critical component of America's energy security, industrial competitiveness, and digital infrastructure, we remain optimistic about the sector's long-term investment opportunity.

Visit the USNG fund page for more information, including fact sheets, insights, index methodology, and regulatory documents.