ETF Research and Analysis

by Alex Bryan
Disclosure: Morningstar Inc.'s Investment Management division licenses indexes to financial institutions as the tracking indexes for investable products, such as exchange-traded funds, sponsored by the financial institution.  Read more 

Bull Case

The fund offers diversified global exposure to the natural-resources sector.
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 diversification benefits. Read more 

Bear Case

Infrastructure investment in China may continue to 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 

This ETF's Index Is a Victim of Its Own Success 
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