Morningstar Rating

ETF Research and Analysis

by Alex Bryan
Suitability
Despite their volatility, stocks linked to natural resources can offer meaningful diversification benefits. Natural resources are key inputs whose prices inversely affect the profitability of companies in other industries.  Read more 

Bull Case

The fund offers diversified exposure to natural-resources stocks.
Long-run growth in demand for commodities from emerging markets is a tailwind that should benefit the fund's holdings.
GNR's equity exposure to commodities allows investors to gain indirect exposure to commodity prices and avoid some of the risks associated with investing in commodity futures, such as negative roll yield. Read more 

Bear Case

Infrastructure investment in China may slow over the long term, which could create a headwind for the fund's holdings.
The performance of the fund's holdings may diverge from the performance of the commodities its holdings, or their customers, sell.
Most of the fund's holdings cannot quickly adjust production as demand shifts.  Read more 

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A Cheap, Large-Cap Fund to Put on Your Watchlist 
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