ETF Research and Analysis

by Alex Bryan, CFA
Suitability
SPDR S&P Global Natural Resources ETF GNR invests in the world's 90 largest stocks in the energy, agriculture, and metals and mining sectors. In order to better diversify the portfolio, the fund assigns equal weightings   Read more 

Bull Case

The fund offers balanced exposure to stocks in the agriculture, energy, and metals and mining industries, which improves diversification.
Natural-resources stocks offer indirect exposure to commodity prices, with better tax efficiency than funds that invest in commodity futures. It also avoids the negative roll-yield risk that futures introduce.
Natural-resources stocks offer good portfolio diversification benefits. Read more 

Bear Case

Demand for industrial metals is concentrated in China. Slowing infrastructure investment there could create a headwind for the fund's holdings in the metals and mining industry.
The performance of the fund's holdings may diverge from the performance of natural-resources commodities.
Many of the fund's holdings sell into volatile commodity markets and compete on cost. Read more 

Liquid Alternatives ETFs Haven't Delivered 
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