GNR provides exposure to industries in energy, materials or agriculture that help consumers access the world’s resources. Additionally, even though we are in an expansionary environment, there may be bumps along the way, and investors should have a game plan to hedge the potential volatility.
“Historically, shares of natural resources companies have performed well in inflationary environments because earnings are closely linked to the value of the underlying commodity produced by the firm. As such, when inflation erodes the value of the US dollar, the value of the underlying commodity and the firm’s shares both rise,” according to SSgA.
The $1.38 billion GNR holds 92 stocks, over 93% of which are materials and energy names.
For more information on the oil market, visit our energy category.