Equity: Global Natural Resources
With 7 ETFs and over $5.26B in combined AUM, the Equity: Global Natural Resources segment provides exposure to the space with a focus on Theme securities.
Year-to-date, the best-performing ETF in the segment is the IQ Global Resources ETF (GRES), with a total return of -7.67%. Meanwhile, the most popular ETF is the FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) with $3.24BB in assets under management.
Investors should take a look at the SPDR S&P North American Natural Resources ETF (NANR). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. NANR tracks an index of US & Canadian firms involved in natural resources and commodities businesses. Firms fall into one of three categories: energy, materials or agriculture. NANR has an expense ratio of 0.35% and tracks the S&P BMI North American Natural Resources Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: Global Natural Resources segment is 73 out of 100, with the iShares North American Natural Resources ETF(IGE) obtaining the highest rating of 90 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.52% per year, with the SPDR S&P North American Natural Resources ETF (NANR) having the lowest expense ratio, charging investors 0.35% yearly.
Investors should look for funds with tight tracking, such as the SPDR S&P Global Natural Resources ETF (GNR), with a 12-month median tracking difference of 0.13%.
ETF.com Tradability Insight
The average tradability score in the Equity: Global Natural Resources segment is 74 out of 100, with the iShares North American Natural Resources ETF(IGE) obtaining the highest rating of 98 out of 100.
The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) is the undisputed segment leader when it comes to liquidity. The fund trades 17.12M in daily average volume. Investors should also find ample liquidity in the iShares North American Natural Resources ETF (IGE), with $10.22M in daily dollar volume.
Use limit orders to trade funds such as the First Trust Indxx Global Natural Resources Income ETF(FTRI), due to their double-digit market spreads.
ETF.com Fit Insight
The Thomson Reuters CRB Commodity Producers Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to HAP. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, FTRI follows a Dividends strategy and obtains a low Fit score compared with our neutral benchmark.