A new exchange-traded fund (ETF) targeting the natural resources sector has been brought to market by State Street Global Advisors.
The SPDR S&P Global Natural Resources ETF (NYSE: GNR) tracks energy, metals and mining and agricultural related stocks inside the S&P Global Natural Resources Index. GNR will compete with other natural resources ETFs like the iShares North American Natural Resources Index Fund (NYSE: IGE) and the Market Vectors RVE Hard Assets Producers ETF (NYSE: HAP).
“The SPDR S&P Global Natural Resources ETF was developed in response to demand from sophisticated investors and financial advisors seeking precise natural resources exposure that is not overweight on the energy sector,” said James Ross, senior managing director at State Street Global Advisors. “With the addition of the SPDR S&P Natural Resources ETF, our family of SPDR ETFs provides investors with an opportunity to benefit from increasing natural resources demand across the globe.”
GNR will undercut the investment-related expenses of other similar ETFs by charging just 0.40% annually. IGE has around $1.5 billion in assets and charges annual expenses of 0.48% and HAP has $129 in assets with annual expenses of 0.65%.
GNR’s underlying index includes 90 of the largest publicly traded companies in global natural resources and commodities businesses. In addition to being listed on a developed market exchanges, stocks within the index must have a minimum market size of $1 billion and a three-month average daily trading value of $5 million or more.
Index holdings are equally-weighted across the energy, metals and mining, and agriculture sectors.
At the end of August, State Street Global Advisors was the second-largest ETF provider in terms of assets with $180.56 billion under management.
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