Beyond Energy, 5 ETFs to launch this year – June 21, 2022

2022 has been the worst for the stock market in decades as the S&P 500 index has been in bear territory for the past week. Decades of inflation, Russia’s invasion of Ukraine and tightening monetary policy have resulted in turbulent trade.

While the energy sector shines, other sectors are caught up in the sharp sell-off in markets, with technology bearing the brunt. However, a few like ETFs iShares North American Natural Resources ETF (IPI free report) SPDR S&P North American Natural Resources ETF (NANR free report) VanEck Morningstar Global Wide Moat ETF (MOTG free report) SonicShares Global Shipping ETF (BOAT Free report) and SPDR S&P Metals & Mining ETF (XME Free Report) have defied the turmoil and are on the rise this year.

Inflation is rising at its fastest pace in more than 40 years, spurred by supply constraints, resilient consumer demand and disruptions in global food and energy markets, exacerbated by Russia’s war in Ukraine. Natural resources such as oil and gas, precious metals and timber tend to do well in times of high inflation and rising interest rates. Investors have plowed heavily into natural resource ETFs this year as they look for inflation hedges (read: ETFs gain as inflation hits a new 40-year high).

Additionally, metals and mining companies are also getting a boost from the rise in commodity prices. In addition, ongoing supply chain issues around the world continued to fuel demand for ships, driving rates higher and thus benefiting shipping companies.

Let’s go into the details of the above ETFs:

iShares North American Natural Resources ETF (IPI Free report) – up 17.6%

The iShares North American Natural Resources ETF provides exposure to oil & gas, mining and forestry companies by tracking the S&P North American Natural Resources Sector Index. It holds 122 stocks in its basket, with none owning more than 10.1% of assets. The iShares North American Natural Resources ETF holds key positions in integrated oil and gas, oil and gas exploration and production, and oil and gas storage and transportation, each accounting for double-digit exposure.

The iShares North American Natural Resources ETF has $1 billion in assets under management and trades an average daily volume of 857,000 shares. The fund charges 43 bps in annual fees.

SPDR S&P North American Natural Resources ETF (NANR Free report) – up 16.4%

The SPDR S&P North American Natural Resources ETF offers exposure to publicly traded large and mid-cap US and Canadian companies in the energy, materials and consumer staples sectors, with exposures to 49%, 44% and 7%, respectively. It follows the S&P BMI North American Natural Resources Index and has 29 stocks in its basket (read: Why Investors Are Pouring Money into Natural Resources ETFs).

The SPDR S&P North American Natural Resources ETF has raised $692.6 million and charges 35 basis points in annual fees. It trades in a moderate volume averaging 91,000 shares per day.

VanEck Morningstar Global Wide Moat ETF (MOTG Free report) – up 11.4%

VanEck Morningstar Global Wide Moat ETF focuses on global companies that Morningstar believes have sustainable competitive advantages, or “moats,” by tracking the Morningstar Global Wide Moat Focus Index. It holds 75 stocks in its basket, each accounting for less than 2.4%. The VanEck Morningstar Global Wide Moat ETF holds key positions in consumer staples, industrials, information technology, financials, and healthcare.

VanEck Morningstar Global Wide Moat ETF has accumulated $15.5 million in its asset base while trading an average daily volume of 2,000 shares. It charges 52 bps in annual fees.

SonicShares Global Shipping ETF (BOAT Free report) – up 4.7%

The SonicShares Global Shipping ETF offers pure exposure to the global shipping industry by tracking the Solactive Global Shipping Index. The Index consists of global shipping companies engaged in the ocean transportation of goods and commodities, including consumer and industrial products, vehicles, dry bulk, crude oil and LNG.

The SonicShares Global Shipping ETF holds 50 stocks in its basket and has amassed $26.3 million in assets. The fund charges 69 basis points in annual fees and trades an average daily volume of 38,000 shares.

SPDR S&P Metals & Mining ETF (XME Free report) – up 4%

The SPDR S&P Metals & Mining ETF offers broad exposure to the US metals and mining industry by tracking the S&P Metals and Mining Select Industry. It holds 33 stocks in its basket, with steel companies making up 41.5% of the portfolio, while coal and consumable fuels, aluminum and gold round out the next two spots, each with double-digit exposure (read: 5 sector ETFs to play robust in May job data).

The SPDR S&P Metals & Mining ETF has an expense ratio of 0.35% and $2.4 billion in assets under management. It trades in an average daily volume of around 7.4 million shares.

About Christine Geisler

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