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. The fund primarily focuses on global companies involved in the exploration, development, and production of natural resources.

Reputation and Reliability

Northern Trust is a well-established asset manager with a strong reputation for providing reliable and diversified investment products, including ETFs.

Management Expertise

Northern Trust has a dedicated team of investment professionals with significant experience in managing ETFs and indexing strategies.

Goal

The primary investment goal is to replicate the performance of the Morningstar Global Upstream Natural Resources Index, providing exposure to global companies involved in the upstream natural resources sector.

Investment Approach and Strategy

Strategy: The fund employs a passive management strategy, seeking to track the performance of the Morningstar Global Upstream Natural Resources Index.

Composition The ETF holds stocks of companies engaged in natural resources exploration, development, and production, including energy, metals, and agriculture.

Market Share: GUNR's market share within the natural resources ETF category is moderate.

Total Net Assets (AUM): 1891000000

Key Competitors

• SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
• Energy Select Sector SPDR Fund (XLE)
• VanEck Oil Services ETF (OIH)

Competitive Landscape

The natural resources ETF landscape is highly competitive, with several large players dominating the market. GUNR differentiates itself with its global upstream natural resources focus and weighting methodology. Advantages include global diversification; disadvantages include potentially higher volatility due to exposure to emerging markets.

Historical Performance: Historical performance data is readily available from various financial data providers. Past performance is not indicative of future results.

Benchmark Comparison: The ETF's performance should be regularly compared to the Morningstar Global Upstream Natural Resources Index to assess tracking accuracy.

Expense Ratio: 0.91

Average Trading Volume

GUNR's average trading volume is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically competitive, reflecting the ETF's trading volume and efficiency.

Market Environment Factors

Economic indicators, commodity prices, geopolitical events, and supply/demand dynamics in the energy, metals, and agriculture sectors significantly impact GUNR's performance.

Growth Trajectory

The growth trajectory is tied to the demand for natural resources globally, and changes in holdings reflect index rebalancing and corporate actions.

Competitive Edge

GUNR's competitive edge lies in its specific focus on global upstream natural resources, distinguishing it from broader energy or materials ETFs. Its index methodology aims to provide a diversified exposure to companies directly involved in exploration and production. The global scope reduces reliance on a single region's economic performance. This focus can appeal to investors seeking targeted exposure to the initial stages of the natural resource value chain.

Volatility

GUNR's historical volatility is expected to be moderately high, reflecting the inherent volatility of the natural resources sector.

Market Risk

GUNR is subject to market risk, including commodity price fluctuations, geopolitical events, and changes in regulatory policies related to natural resources.

Ideal Investor Profile

The ideal investor is one seeking exposure to the global natural resources sector and is comfortable with the associated volatility and risks.

Market Risk

GUNR is best suited for long-term investors with a strategic allocation to natural resources, as well as those seeking tactical exposure to this sector.

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) offers targeted exposure to global companies engaged in the exploration, development, and production of natural resources. It seeks to replicate the performance of the Morningstar Global Upstream Natural Resources Index and provides investors with a diversified, passive approach to this sector. However, it is important to consider the fund's moderate expense ratio, sensitivity to commodity price fluctuations and geopolitical events, and relatively smaller AUM than its major competitors. Therefore, GUNR may be most appropriate for investors with a specific interest and tolerance for risk in the global upstream natural resources market.

Data Sources:

• Morningstar
• Northern Trust
• ETF.com
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.