SPDR® S&P Global Natural Resources ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy earns an Average Process Pillar rating.  Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Shell PLC

BHP Billiton

Exxon Mobil

TotalEnergies SE

Freeport-McMoRan

Chevron

Nutrien

Canadian Natural Resources

Nucor

Corteva Inc

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. SPDR® S&P Global Natural Resources ETF earns an Average Process Pillar rating. The main driver of the rating is the parent firm's five-year risk-adjusted success ratio of 58%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. This fund tracks an index, which also increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by the fund's weak long-term risk-adjusted performance. This can be seen in its five-year information ratio calculated relative to the category index, which suggests that the process has struggled over that period.

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Global Natural Resources Index.  The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index and in depositary receipts based on securities comprising the index. The index is comprised of 90 of the largest U.S. and foreign publicly-traded companies, based on market capitalization, and in natural resources and commodities businesses that meet certain investability requirements. 

 The portfolio is overweight in energy and consumer cyclical relative to the category average by 5.7 and 5.6 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and utilities, underweight the average by 10.6 and 3.3 percentage points of assets, respectively. The strategy owns 120 securities and is relatively top-heavy. Of the strategy's assets, 34.4% are concentrated within the top 10 holdings, compared to the typical peer's 23.9%. And finally, in terms of portfolio turnover, on a year-over-year basis, 15% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

SPDR® S&P Global Natural Resources ETF benefits considerably from its equity team, earning it an Above Average People Pillar rating. There are two managers listed on the fund: Karl Schneider, David Chin. The team is well equipped, with an average of over 25 years of portfolio management experience. Together, they manage a total of five strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

SPDR S&P Global Natural Resources ETF

GNR tracks an index of global companies in natural resources and/or commodity businesses.

Global X Artificial Intelligence & Technology ETF

ARK Innovation ETF

Amplify Transformational Data Sharing ETF

Global X Robotics & Artificial Intelligence ETF

Amplify Seymour Cannabis ETF

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund

FlexShares Morningstar Global Upstream Natural Resources Index Fund

iShares US Infrastructure ETF

iShares Robotics & Artificial Intelligence Multisector ETF

Global X Lithium & Battery Tech ETF

Amplify Alternative Harvest ETF

AdvisorShares Pure US Cannabis ETF

MSUS

Amplify Natural Resources Dividend Income ETF

Global X U.S. Infrastructure Development ETF

First Trust Nasdaq Artificial Intelligence & Robotics ETF

iShares MSCI USA ESG Select ETF

Robo Global Artificial Intelligence ETF

Yieldmax Tsla Option Income Etf

Wisdomtree Artificial Intelligence And Innovation Fund

To close out the year, I thought it would be interesting to see which thematic categories experienced the most inflows in 2023, demonstrating proverbially “where the puck was going.” This data, sourced from Bloomberg and VettaFi's internal data, is interesting because it does not necessarily align with performance.

Disruptive Tech Theme of the Week: Top Thematic ETF Flows 2023

The SPDR® S&P Global Natural Resources ETF is an alternative to the S&P 500 for long-term saving. GNR focuses on natural resources and offers diversified equity exposure across agribusiness, energy, and metals & mining sectors. GNR has a lower PE ratio and higher dividend yield compared to the S&P 500, potentially providing better long-term returns.

GNR: Ride The Growth Of Global Demand

Avantis U.S. Small Cap Value ETF

YieldMax COIN Option Income Strategy ETF

Pacer US Cash Cows 100 ETF

First Trust Dorsey Wright Focus 5 ETF

iShares Russell 1000 Value ETF

iShares Russell 1000 Growth ETF

JPMorgan Equity Premium Income ETF

iShares MSCI USA Momentum Factor ETF

YieldMax NVDA Option Income Strategy ETF

Invesco DWA Momentum ETF

Invesco S&P 500 Pure Growth ETF

Invesco S&P 500 Pure Value ETF

SPDR Portfolio S&P 500 Growth ETF

SPDR Portfolio S&P 500 Value ETF

T Rowe Price Blue Chip Growth ETF

First Trust NASDAQ Technology Dividend Index Fund

VictoryShares Free Cash Flow ETF

iShares MSCI USA Value Factor ETF

Vanguard Value ETF

Vanguard Growth ETF

Consumer Staples Select Sector SPDR Fund

Good Morning, VettaFi Voices! Growth has blown value out of the water in 2023. It's not even close. The Vanguard Value ETF (VTV) is up less than 1% year to date. Meanwhile, the Vanguard Growth ETF (VUG), the growth fund, is up 32%. That's a big difference, and clearly we're in a growth regime.

VettaFi Voices On: The Nature of Value

Investing in real return ETFs is recommended due to expected inflation above the Fed's 2% target in the coming years. Global natural resource equities serve as an inflation hedge and benefit from green energy trends. The SPDR S&P Global Natural Resources ETF provides international diversification, exposure to Chinese growth, and a cheap valuation.

GNR: Value, Momentum And (China) Growth

Goldman Sachs TreasuryAccess 0-1 Year ETF

SPDR Gold Trust

iShares S&P GSCI Commodity Indexed Trust

Aberdeen Standard Gold ETF Trust

SPDR S&P 500 ETF Trust

Vanguard Total World Stock ETF

When it comes to investing, some people don't think in terms of thousands of dollars, tens of thousands, or even millions.

What the really rich are doing with their money right now: Goldman Sachs

SPDR Gold MiniShares Trust

Recent readings of the Consumer Price Index (CPI) indicate that while inflation is trending lower, it remains elevated relative to historical norms and well above the Federal Reserve's desired 2%. As a result of persistently high inflation, it's not surprising that many advisors and investors are turning to asset classes with inflation-fighting reputations.

Using Gold-Plus Approach to Fight Inflation

GNR is an ETF that tracks the performance of the S&P Global Natural Resources Index, specifically agriculture, energy, and metals & mining. The high demand energy sector and remarkable performance of the high-yielding largest-cap companies make GNR an attractive choice.

GNR: Large-Cap Investing Supported By Big Growth Sectors

Sectors and industries such as traditional energy, materials, and mining aren't often thought of as bastions of environmental, social, and governance (ESG) promise. Actually, many investors and ESG observers view those groups as likely ESG offenders.

This ETF Has Surprising ESG Potential

SPDR S&P North American Natural Resources ETF

The GNR ETF provides exposure to global natural resource companies. Natural resource companies have been big winners in the past few years; however, the outlook is murkier with a possible global recession in 2023.

GNR: Good, But Prefer NANR

Inflation remains elevated. GNR outperforms during periods of high prices and rising inflation.

GNR: Natural Resources ETF, Strong Inflation Hedge, 4.5% Yield

iShares North American Natural Resources ETF

Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

At the end of June, VettaFi asked advisors about their growing interest in commodities during a webcast hosted with Direxion, and I was pleasantly surprised. While 50% of respondents said they were currently getting exposure to commodity markets through a broad commodity basket, only 31% chose precious metals options of gold or silver.

Chart of the Week: Advisors Tapping Into Commodities Through Natural Resource ETFs

GNR invests in companies involved with natural resources across energy, materials, and agriculture. The fund has faced increasing levels of volatility with commodity prices under pressure amid new global growth concerns.

GNR: Correction In Commodities Offers A New Buying Opportunity

First Trust Indxx Global Natural Resources Income ETF

VanEck Vectors Natural Resource ETF

They're all outperforming broad equity markets year to date.

4 Global ETFs Offer Natural Resources Exposure

The ETF GNR hit a 52-week high lately. Can it soar further?

Natural Resources ETF (GNR) Hits a 52-Week High

The macro economic backdrops for natural resources are favorable but softening. Energy markets are bullish.

SPDR S&P Global Natural Resources ETF: Nice Yield With Capital Appreciation Potential

Air Products and Chemicals

BlackRock Resources & Commodities Strategy Trust

Fidelity MSCI Materials Index ETF

Franco-Nevada C

First Trust Materials AlphaDEX Fund

IQ Global Resources ETF

Horizon Kinetics Inflation Beneficiaries ETF

iShares U.S. Basic Materials ETF

John Hancock Multifactor Materials ETF

iShares Global Materials ETF

Adams Natural Resources Fund Inc

Invesco S&P 500 Equal Weight Materials ETF

PSh Shr Bsc Mat Shs

ProShares UltraShort Basic Materials

ProShares Ultra Basic Materials

Vanguard Materials ETF

Materials Select Sector SPDR Fund

The basic materials sector is relatively small when you only consider dividend-paying companies. The basic materials sector is best for growth investors. APD has found an interesting way to position its business in a sector where most are stuck with commodity price fluctuations.

Basic Materials: One Of The Best Sectors To Play

Investors looking to protect portfolios against inflation often turn to Treasury Inflation Protection Securities (TIPS), but there are other ways to buffer a portfolio against rising consumer prices. Those opportunities include hard assets.

Getting Resourceful With Natural Resources for Inflation Protection

Natural Resources Equities: Preparing For Reflation And A Dollar Decline

News for SPDR S&P Global Natural Resources ETF ETF (GNR)