Commodity and natural resource investments may be omitted from many portfolios, but such allocation choices now might be worth reassessing.
One way to invest in these investment themes is through the SPDR S&P Global Natural Resources ETF (GNR). The fund, evenly divided between the metals & mining, agriculture and energy sectors, is on the rise and can make money for investors.
GNR is weighted by market cap and holds roughly 90 companies in total. The maximum weight of each sub-index is capped at one-third of the index’s total holdings. As the name suggests, GNR offers some global exposure, although the United States is the most represented nation among the portfolio holdings.
This fund has outperformed the S&P over the last year to notch a 19% gain in that period, largely due to a very strong relative performance in 2021. Plus, GNR has an ordinary expense ratio of 0.40% and pays a 2.56% dividend yield. GNR currently holds $1.5 billion in assets.
Chart courtesy of www.StockCharts.com
The fund’s top 10 holdings include BHP Group Ltd. (NYSE:BHP), 5.46%; Exxon Mobil Corp. (NYSE:XOM), 4.72%; Nutrien Ltd. (NYSE:NTR), 4.12%; Chevron Corp. (NYSE:CVX), 3.88%; Total SE (NYSE:TOT), 3.77%; Royal Dutch Shell Plc Class A (NYSE:RDS.A), 2.66%; Vale S.A. Sponsored ADR (NYSE:VALE), 1.63%; UPM-Kymmene Oyj (OTCMKTS:UPMMY), 2.62%; and BP p.l.c. (NYSE:BP), 2.60%. The top 10 holdings make up about one-third of its total assets, as of Feb. 23.
After the United States, consisting of 32.80% of the fund’s portfolio, the countries most represented among GNR’s holdings are: the United Kingdom, 13.27%; Canada, 11.30%; Australia, 10.67%; Finland, 5.11%; France, 4.54%; Brazil, 2.94%; Russia, 2.92%; Japan, 2.26%; and Norway, 1.77%%.
For investors looking for a convenient way to hold some of the biggest and best in global natural resource companies, SPDR S&P Global Natural Resources ETF (GNR) provides an uncomplicated way to add the sector to your portfolio.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.