“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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