Investors and advisors who want exposure in the energy sector but are wary about further volatility can utilize a diversified natural resource ETF to capture a broad group of resource companies.
“NANR is designed to meet demand for natural resources equity exposure by providing access to companies in the energy, materials and agriculture industries. NANR provides investors with an approach that weights the sub-sectors of the portfolio 45 percent energy, 35 percent materials and 20 percent agriculture stocks,” according to a statement from SSgA.
NANR holds nearly 60 stocks and charges 0.35% per year.
“Recent volatility in the energy sector has many clients asking us for a different approach to gaining exposure to US and Canadian natural resources companies than what may be currently available to them,” said James Ross, executive vice president and global head of SPDR Exchange Traded Funds at State Street Global Advisors, in the statement. “NANR offers a more balanced approach to investing in natural resources companies as opposed to a single sector energy allocation, which may be skewed to oil companies.”