IndexIQ Global Resources ETF receives top Morningstar rating

Jan 2nd, 2013 | By | Category: Commodities

The IndexIQ Global Resources ETF (GRES), a partially hedged global resources exchange-traded fund, has received a 5-Star Overall Morningstar Rating and a 5-Star Three-Year Morningstar Rating out of 22 funds in the Natural Resources category.

IndexIQ Global Resources ETF receives top Morningstar rating

Introduced in October 2009, the IndexIQ Global Resources ETF offers exposure to global resources companies with a partial equity hedge.

Morningstar rates investments from one to five stars based on how well they’ve performed in comparison to similar investments, after adjusting for risk and accounting for all relevant sales charges. Within each Morningstar Category, the top 10% of investments receive 5-Star rating.

Introduced on October 27, 2009, the NYSE-listed fund uses momentum and valuation factors to identify global companies that operate in commodity-specific market segments and whose equity securities trade in developed markets globally.

These segments include the major commodity sectors (Precious Metals, Industrial Metals, Livestock, Energy, and Grains, Food & Fibre), plus Timber, Water and Coal. The fund also includes short exposure to global equities as a partial equity market hedge.

The fund has been among the highest performing ETFs in the commodities and natural resources category during its more than three years of live history, as well as exhibiting among the lowest levels of volatility in its category.

Adam S. Patti, chief executive officer at IndexIQ, said: “The last three years have seen tremendous growth in demand for commodities worldwide. GRES was introduced into this market to help investors achieve broad exposure to this asset class through a single ETF with a globally diversified portfolio of holdings.”

He added: “The fund offers wide ranging commodities exposure in tandem with the benefits of an exchange-traded fund – liquidity, transparency, and low cost when compared to traditional commodities-oriented hedge fund vehicles.”

The fund has an annual expense ratio of 0.75%.

Asset allocation as of 30 September 2012.

Asset allocation as of 30 September 2012.

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