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Beyond Energy, 5 ETFs That Are Up This Year

The year 2022 has been the worst in decades for the stock market as the S&P 500 Index has been in a bear territory over the past week. Decades-high inflation, Russia’s invasion of Ukraine and tightening monetary policy have led to tumultuous trading.  

While the energy sector is shining, other sectors are caught up in the sharp market sell-off, with technology bearing the brunt the most. However, a few ETFs like iShares North American Natural Resources ETF IGE, SPDR S&P North American Natural Resources ETF NANR, VanEck Morningstar Global Wide Moat ETF MOTG, SonicShares Global Shipping ETF BOAT, and SPDR S&P Metals & Mining ETF XME have defied the turmoil and are up this year.

Inflation is soaring at its fastest pace in more than 40 years, buoyed by supply constraints, robust consumer demand and disruptions to global food and energy markets worsened by Russia's war against Ukraine. Natural resources like oil and gas, precious metals, and timber tend to perform well during periods of high inflation and rising rates. Investors have been pouring a lot of money into natural resources ETFs this year as they seek inflation hedges (read: ETFs to Win as Inflation Jumps to New 40-Year High).

Additionally, metal and mining companies are also getting a boost due to the rise in raw materials prices. Further, the ongoing supply chain issues around the world continued to bolster the demand for shipping, pushing the rates higher and thus benefiting the shipping companies.

Let’s dig into the detail of the above-mentioned ETFs:

iShares North American Natural Resources ETF (IGE) – Up 17.6%

iShares North American Natural Resources ETF offers exposure to oil and 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 holding more than 10.1% of assets. iShares North American Natural Resources ETF has key holdings in integrated oil & gas, oil & gas exploration & production, and oil & gas storage & transportation that account for a double-digit exposure each.

iShares North American Natural Resources ETF has amassed $1 billion in AUM and trades in 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) – Up 16.4%

SPDR S&P North American Natural Resources ETF provides exposure to U.S. and Canadian publicly traded large and mid-cap companies within the industries of the energy, materials and consumer staples with 49%, 44% and 7% share, respectively. It follows the S&P BMI North American Natural Resources Index, holding 29 stocks in its basket (read: Why Investors are Pouring Money into Natural Resources ETFs).

SPDR S&P North American Natural Resources ETF has amassed $692.6 million and charges 35 bps in annual fees. It trades in a moderate volume of 91,000 shares a day on average.

VanEck Morningstar Global Wide Moat ETF (MOTG) – Up 11.4%

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

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

SonicShares Global Shipping ETF (BOAT) – Up 4.7%

SonicShares Global Shipping ETF provides pure-play exposure to the global maritime shipping industry by tracking the Solactive Global Shipping Index. The index consists of global shipping companies engaged in the maritime transportation of goods and raw materials, including consumer and industrial products, vehicles, dry bulk, crude oil and liquefied natural gas.

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

SPDR S&P Metals & Mining ETF (XME) – Up 4%

SPDR S&P Metals & Mining ETF offers broad exposure to the U.S. metal and mining industry by tracking the S&P Metals and Mining Select Industry. It holds 33 stocks in its basket, with steel firms accounting for 41.5% of the portfolio, while coal & consumable fuels, aluminum and gold round off the next two spots with a double-digit exposure each (read: 5 Sector ETFs to Play Robust May Jobs Data).

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


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SPDR S&P Metals & Mining ETF (XME): ETF Research Reports
 
SPDR S&P North American Natural Resources ETF (NANR): ETF Research Reports
 
iShares North American Natural Resources ETF (IGE): ETF Research Reports
 
SonicShares Global Shipping ETF (BOAT): ETF Research Reports
 
VanEck Morningstar Global Wide Moat ETF (MOTG): ETF Research Reports
 
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