Strengthening Global Economy Could Lift Hard Asset ETFs

“We exit 2017 with the strongest global economic growth forecasts since the financial crisis. With an outlook for further synchronized growth in 2018, we see tighter supply and demand balances for a vast majority of the commodities that we follow closely,” Reynolds said.

As investors consider ways to diversify a portfolio, one may look to resources and commodities-related ETFs, such as the VanEck Vectors Natural Resources ETF (NYSEArca: HAP).

HAP is a based on an index of global commodity equities. The underlying VanEck Natural Resources Index tracks companies involved in the production and distribution of commodities and commodity-related products and services involved in agriculture, alternatives (water & alternative energy), base and industrial metals, energy, forest products, and precious metals.

The hard asset-related ETF includes a diverse portfolio of various commodities-related equity companies. For instance, sector weight include materials 39.5%, energy 28.4%, consumer staples 15.7%, industrials 10.6% and utilities 2.0%. Top component holdings include Monsanto 6.8%, Deere & Co 6.6%, Exxon Mobil 3.9%, Tyson Foods 3.1% and Archer Daniels Midland 3.0%.

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