ETF Research and Analysis

by Alex Bryan
Suitability
Despite their volatility, stocks linked to natural resources can offer meaningful diversification benefits. Natural resources are cost drivers for companies in many other industries. In contrast, natural-resources companies   Read more 

Bull Case

The fund offers diversified exposure to natural-resources stocks.
Gaining exposure to commodity prices through stocks allows investors to avoid some of the risks associated with investing in commodity futures, such as negative roll yield.
Natural-resources stocks may offer good portfolio diversification benefits. 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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