IQ Global Resources ETF
The IQ Global Resources ETF (GRES) is an odd-ball ETF that generally gets zero attention form investors. However, that’s a real shame as the small fund has managed to be quite good in the performance category.
That’s because GRES uses a unique strategy to track commodities.
The ETF provides exposure to a basket of 151 hard asset producers — via a propriety Index IQ benchmark. The interesting part is that GRES then shorts the S&P 500 and MSCI EAFE indices. This isolates the return generated through movements in commodity prices. In essence, you get a product that tracks commodity futures, but it uses stocks to do so. This eliminates the hassle of dealing with a K-1 statement come tax time.
The fund’s strategy has also managed to outperform other futures-based ETFs in its lifespan.
GRES is up about 4.53% since 2009. Expenses run just 0.77% for the unique fund.