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

Overview

The SPDR S&Pu00ae North American Natural Resources ETF (NANR) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P BMI North American Natural Resources Index. It focuses on the natural resources sector, allocating investments across various sub-industries within that sector. The ETF aims to capture the performance of North American companies involved in natural resources and commodities.

Reputation and Reliability

State Street SPDR ETFs are known for their extensive experience and reliability in the ETF market, with a strong track record of providing diverse investment solutions.

Management Expertise

State Street has a long history of managing ETFs, bringing deep expertise in index tracking and asset management to NANR.

Goal

The primary investment goal of NANR is to replicate the performance of the S&P BMI North American Natural Resources Index.

Investment Approach and Strategy

Strategy: NANR employs a replication strategy, meaning it aims to hold all the stocks in the S&P BMI North American Natural Resources Index in proportion to their weighting in the index.

Composition The ETF primarily holds stocks of North American companies involved in natural resources, including energy, metals & mining, and agriculture-related industries. The asset composition is heavily weighted towards equities.

Market Share: NANR's market share within the natural resources ETF sector is moderate but significant.

Total Net Assets (AUM): 35260000

Key Competitors

• First Trust Natural Resources ETF (FTRI)
• iShares MSCI Global Metals & Mining Producers ETF (PICK)
• Energy Select Sector SPDR Fund (XLE)

Competitive Landscape

The natural resources ETF industry is competitive, with several players offering similar exposure. NANR competes based on its index tracking accuracy, expense ratio, and trading liquidity. Competitors like XLE offer more targeted exposure to the energy sub-sector. FTRI and PICK offer more diversified or specific exposure in different sub-sectors.

Historical Performance: NANR's historical performance is heavily influenced by commodity prices and the performance of the broader natural resources sector. Performance can be cyclical and volatile.

Benchmark Comparison: NANR's performance is expected to closely track the S&P BMI North American Natural Resources Index. Any deviations are primarily due to tracking error and expense ratio.

Expense Ratio: 0.35

Average Trading Volume

NANR exhibits moderate liquidity with a reasonable average trading volume.

Bid-Ask Spread

The bid-ask spread for NANR is generally tight, indicating efficient trading.

Market Environment Factors

NANR is impacted by factors such as commodity prices, global economic growth, geopolitical events, and regulatory changes affecting the natural resources sector.

Growth Trajectory

NANR's growth is dependent on the overall health of the natural resources sector, with periods of expansion during commodity booms and contraction during downturns. No major strategy or holding changes are apparent.

Competitive Edge

NANR benefits from State Street's established brand and extensive ETF management experience. Its broad exposure to North American natural resources offers diversification within the sector. The ETF's relatively low expense ratio compared to some competitors provides a cost advantage. However, other ETFs offer more targeted exposure to specific sub-sectors, which can be an advantage for investors with specific views. Finally, the ETFu2019s diversification means it is less sensitive to the failure of any single company.

Volatility

NANR's volatility is relatively high due to the inherent cyclicality and price fluctuations of the natural resources sector.

Market Risk

NANR is susceptible to commodity price risk, regulatory risk, and economic cycles. Changes in supply and demand, environmental regulations, and geopolitical events can significantly impact the performance of the ETF.

Ideal Investor Profile

NANR is suitable for investors seeking exposure to the natural resources sector as part of a diversified portfolio. It may appeal to investors with a positive outlook on commodity prices and the North American economy.

Market Risk

NANR is generally suitable for long-term investors who understand the cyclical nature of the natural resources sector. It may also be used by active traders to capitalize on short-term commodity price movements, but this is riskier.

The SPDR S&Pu00ae North American Natural Resources ETF (NANR) offers exposure to the North American natural resources sector by tracking the S&P BMI North American Natural Resources Index. Its performance is highly correlated with commodity prices and economic cycles. State Street's experienced management and a reasonable expense ratio enhance its appeal. However, its volatility and sector-specific risk mean that this ETF is best suited for investors with a higher risk tolerance and a long-term investment horizon, as well as a positive outlook on the natural resources sector.

Data Sources:

• SPDR website
• ETF.com
• Yahoo Finance
• Bloomberg

Disclaimers:

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