State Street Global Advisors (SSGA), begun trading the SPDR S&P North American Natural Resources ETF (NYSE Arca: NANR) on Wednesday, December 16, 2015.
Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: NANR | Exchange: NYSE Arca |
| Name: SPDR S&P North American Natural Resources ETF | Net Expense Ratio: 0.35% |
FUND OBJECTIVE:
The SPDR S&P North American Natural Resources ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P BMI North American Natural Resources Index.
REFERENCE INDEX:
The S&P BMI North American Natural Resources Index comprises publicly traded large- and mid-capitalization U.S. and Canadian companies in the natural resources and commodities businesses that meet certain investability requirements and are classified within the sub-industries of one of 3 natural resources categories: energy, materials or agriculture.
The Index is a sub-set of the S&P Global LargeMidCap Commodity and Resources Index (Parent Index), which serves as the initial universe of eligible securities for the Index. The Parent Index consists of U.S. and foreign publicly traded large- and mid-cap companies in the natural resources and commodities businesses that are classified within the sub-industries of the energy, materials or agriculture categories, have a minimum float adjusted market capitalization of $1 billion and have a minimum three-month average daily trading value of $5 million. The Index consists of companies comprising the Parent Index that are domiciled in and publicly traded principally in the U.S. or Canada.
Each natural resources category includes companies classified within specific Global Industry Classification Standard (GICS) sub-industries according to the company’s principal business activity. The energy category consists of companies classified in the following sub-industries: coal & consumable fuels; integrated oil & gas; and oil & gas exploration & production. The materials category consists of companies classified in the following sub-industries: aluminum; diversified metals & mining; gold; precious metals & minerals; and silver. The agriculture category consists of companies classified in following sub-industries: agricultural products; fertilizers & agricultural chemicals; and forest products. At each quarterly Index rebalancing, the combined weight of securities of companies in the energy, materials and agriculture categories are set at 45%, 35% and 20%, respectively.
The Index uses a “modified market capitalization” weighting scheme, which means that modifications are made to the market capitalization weights to reduce single-stock concentration and to enable the Fund to qualify as a “regulated investment company” under the Internal Revenue Code of 1986, as amended. Index constituents are weighted within each natural resources category proportionate to their float- adjusted market capitalization and are capped so that no stock exceeds 10% of the Index. Market capitalization and liquidity criteria are subject to change on an annual basis according to market conditions. The Index is rebalanced quarterly. The Index is “float-adjusted,” meaning that only those shares publicly available to investors are included in the Index calculation.
As of September 30, 2015, the Index comprised 72 securities.
Fund’s Top 10 Holdings (12/17/15):
| Exxon Mobil Corporation | 10.67% |
| Chevron Corporation | 9.83% |
| Monsanto Company | 6.87% |
| Alcoa Inc. | 5.81% |
| Newmont Mining Corporation | 4.51% |
| Goldcorp Inc. | 4.40% |
| Barrick Gold Corporation | 3.92% |
| Franco-Nevada Corporation | 3.42% |
| Archer-Daniels-Midland Company | 3.41% |
| Freeport-McMoRan Inc. | 3.37% |
Fund Sector Allocation (12/17/15):
| Materials | 50.53% |
| Energy | 44.56% |
| Consumer Staples | 4.91% |
Useful Links:
NANR Home Page
Category: Equities> Regions> Canada/N.America
ETFtrack comment:
Here is a comment from James Ross, executive vice president and global head of SPDR Exchange Traded Funds at State Street Global Advisors:
“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. 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.”