Investors looking for ETFs with rising momentum should begin to consider the FlexShares Morningstar Global Upstream Natural Resources (NYSE:GUNR). This product just hit a new 52-week high of $29.97 today, and is now up 60.35% from its 52-week low price of $18.69 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside GUNR’s Rise
As mentioned earlier, GUNR has now gained 60.35% from its 52-week low, which was hit back on January 20, 2016. The fund has now returned 4.67% over the past month, 9.81% over the past three months, and 10.99% in the past six months. Those returns compare to the benchmark S&P 500 index’s 0.54%, 6.21%, and 5.76% returns in the same periods, respectively.
GUNR currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
A Look Under The Hood
FlexShares Morningstar Global Upstream Natural Resources Index ETF Index Fund is an Equity-focused product issued by FlexShares. Its expense ratio of 0.48% makes it the #10 cheapest ETF among 121 total funds in the Commodity ETFs category.
GUNR currently boasts $3.57B in assets under management (AUM), placing it #1 of 121 ETFs in its category, and #126 of 1920 total ETFs in the U.S. exchange traded universe.
The investment objective of the FlexShares Morningstar Global Upstream Natural Resources Index Fund ETF is to provide a balanced emphasis on the “upstream” portion of the natural resources supply chain, providing coverage of global companies in the energy, metals and agriculture sectors, while maintaining a core exposure to the timberlands and water resources sectors.
Fund literature states that GUNR’s purpose is two-fold:
1. Identify upstream natural resources equities based on a Morningstar industry classification system, and 2. Balanced exposure to three traditional (30% each in Agriculture, Energy, and Metals) and two nontraditional (5% each in Timber and Water) natural resource sectors.
GUNR SMART Grade: More Gains Ahead?
GUNR currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 122 funds in the Commodity ETFs category.
A SMART Grade of A suggests extremely strong future price growth potential, so it’s reasonable to expect even more gains ahead for this red-hot fund.