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

Long-run growth in demand for commodities from emerging markets is a tailwind that should benefit the fund's holdings.
The fund offers diversified global exposure to the natural-resources sector at a reasonable price.
Equity-linked exposure to commodities allows investors to 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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