Elevated trading volume in a specialized natural resources ETF on Thursday suggests an institution or group of investors is positioning on a rebound in demand for commodities.
“We saw a noticeable increase in volume in FlexShares Global Upstream Natural Resources (NYSEArca: GUNR), which traded about five times average daily volume and was better bid throughout the day,” WallachBeth Capital said in a note. [A Unique Natural Resource ETF for Growing Demand for Materials]
GUNR holds about $2.5 billion of assets and charges a net expense ratio of 0.48%.
The ETF seeks to provide investors exposure to the rising demand for natural resources driven by globalization, according to FlexShares.
“It is one of the first ETFs with a balanced emphasis on the ‘upstream’ portion of the natural resources supply chain, providing coverage of global companies in the energy, metals and agriculture sectors, while maintaining a core exposure to timberlands and water resources sectors,” the ETF manager said.
In terms of sector breakdowns, GUNR has 34.3% in energy, 29.4% in agriculture and 23% in metals.