FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR)

Overview

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Global Upstream Natural Resources Index. GUNR provides exposure to global companies involved in the exploration and extraction of natural resources.

Reputation and Reliability

FlexShares is a suite of ETFs from Northern Trust, a well-established financial institution with a strong reputation for asset management.

Management Expertise

Northern Trust has extensive experience in managing index-tracking and factor-based ETFs, leveraging their research and portfolio management capabilities.

Goal

To track the performance of the Morningstar Global Upstream Natural Resources Index.

Investment Approach and Strategy

Strategy: Tracks the Morningstar Global Upstream Natural Resources Index, a rules-based index intended to offer a representation of the performance of global companies in the upstream natural resources sector.

Composition Primarily holds stocks of companies involved in the exploration and extraction of natural resources. The fund focuses on companies that are early in the supply chain.

Market Share: GUNR's market share represents a segment of the natural resources ETF market.

Total Net Assets (AUM): 1958349443

Key Competitors

• XOP
• OIH
• IYE
• GDX
• IGE

Competitive Landscape

The natural resources ETF market is highly competitive, with numerous funds offering exposure to various sub-sectors. GUNR differentiates itself with its global upstream focus. Its competitors offer different weightings, expense ratios, and sub-sector focuses, giving investors various choices. Advantages are its global approach and upstream focus, while a disadvantage can be its concentration risk within the natural resources sector.

Historical Performance: Historical performance data would require access to specific market data sources and is subject to change; refer to financial websites for specific returns data.

Benchmark Comparison: Benchmark comparison involves comparing GUNR's returns against the Morningstar Global Upstream Natural Resources Index to assess tracking accuracy.

Expense Ratio: 0.46

Average Trading Volume

The average trading volume of GUNR indicates moderate liquidity, allowing for relatively easy buying and selling of shares.

Bid-Ask Spread

The bid-ask spread represents the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, reflecting the cost of trading the ETF and generally indicates moderate liquidity.

Market Environment Factors

GUNR is affected by global economic growth, commodity prices, geopolitical events, and supply/demand dynamics in the natural resources sector.

Growth Trajectory

Growth depends on the performance of the natural resources sector, driven by global demand, exploration successes, and technological advancements. Changes in strategy would be announced by the fund manager.

Competitive Edge

GUNR benefits from Morningstar's research-driven index construction, which provides a unique methodology for selecting companies involved in upstream natural resource activities. This focuses on companies that are extracting or exploring natural resources. This offers a differentiated exposure within the natural resources sector. The targeted focus on upstream activities provides investors with exposure to the early stages of the natural resource supply chain. This can be advantageous when raw material demand is high.

Volatility

GUNR's volatility is typically higher than broad market ETFs due to its concentration in the natural resources sector, which is sensitive to commodity price fluctuations.

Market Risk

Market risk includes fluctuations in commodity prices, geopolitical instability, regulatory changes, and environmental concerns impacting natural resource companies.

Ideal Investor Profile

GUNR is suited for investors seeking exposure to the global natural resources sector, particularly those with a bullish outlook on commodity prices and global economic growth.

Market Risk

GUNR may be suitable for long-term investors seeking sector-specific exposure and diversification, but is not usually suitable for risk-averse investors or those seeking stable returns.

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) provides a targeted approach to investing in global upstream natural resource companies. It tracks the Morningstar Global Upstream Natural Resources Index. It's suitable for investors seeking sector-specific exposure within the natural resources supply chain. Due to its concentration in a cyclical sector, investors should expect higher volatility and sensitivity to commodity prices. Investors should consider GUNR if they are bullish on global commodity demand and economic growth.

Data Sources:

• FlexShares Website
• Morningstar
• ETFdb.com
• Bloomberg
• Northern Trust Website

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.