A sound investment process and strong management team underpin SPDR S&P® North American Natural Res ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and an underweight in liquidity exposure compared with category peers. High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And a low liquidity exposure is rooted in stocks with lower trading volumes, limiting managers' flexibility. The strategy’s management team earns an Above Average People Pillar rating. 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

Exxon Mobil

Freeport-McMoRan

Chevron

Corteva Inc

Newmont Mining

Archer-Daniels-Midland Company

Agnico Eagle Mines

ConocoPhillips

Barrick Gold

Nutrien

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. SPDR S&P® North American Natural Res ETF earns a High Process Pillar rating. The main driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Strong risk-adjusted performance also contributes to the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. The parent firm's five-year risk-adjusted success ratio of 58% contributes to the process. 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. Their relatively high success ratio suggests that this firm does well for investors and that this fund may benefit from that.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the performance of the S&P BMI North American Natural Resources Index.  The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index comprises publicly traded large- and mid-capitalization U.S. and Canadian companies in the natural resources and commodities businesses that meet certain investability requirements and are classified within the subindustries of one of three natural resources categories: energy, and metals & mining or agriculture. The fund is non-diversified. 

 The portfolio is overweight in energy by 20.1 percentage points in terms of assets compared with the category average, and its consumer defensive allocation is similar to the category. 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 35 securities and is relatively top-heavy. Of the strategy's assets, 60.6% are concentrated within the top 10 holdings, as opposed to the typical peer's 23.9%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 25% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

High

Process

SPDR S&P® North American Natural Res ETF benefits considerably from its team, earning it an Above Average People Pillar rating. There are three managers listed on the fund: Karl Schneider, Emiliano Rabinovich, Olga Winner. Experience on the team is abundant, with 19 years of average portfolio management experience. Together, they manage a total of two strategies, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position 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 North American Natural Resources ETF

NANR tracks an index of US & Canadian firms involved in natural resources and commodities businesses.

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News for SPDR S&P North American Natural Resources ETF ETF (NANR)