SS&C ALPS Advisors launched a new ETF on July 11 that focuses on natural resources. The ALPS CoreCommodity Natural Resources ETF aims to offer pure-play exposure to the space. It joins the firm’s other top ETF strategies like the Alerian MLP ETF (AMLP ), which also focuses on natural resources and related business lines.
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SS&C ALPS Advisors joined with CoreCommodity Management to launch the strategy. The ETF aims to offer investors exposure to natural resources via “upstream commodity-producing companies.”
Natural Resources ETF CCNR's Debut
CoreCommodity Management uses an actively managed, quantitative, multifactor process to assess commodity relationships and fundamentals. The firm’s press release further emphasized that natural resources exposure could help diversify overall portfolio risk.
“This commodity-oriented equity ETF offers a strategic gateway to global economic shifts and natural resource dynamics, providing investors with a potential hedge against inflation and participation in equity returns," said Laton Spahr, portfolio manager and president of SS&C ALPS Advisors and a registered representative of ALPS Distributors, Inc.
“CCNR offers access to natural resources equities and is actively managed in an ETF wrapper to capture commodity growth opportunities,” he added.
The fund will charge a 39 basis point fee, according to its summary prospectus. Digging deeper into its approach, CCNR looks at a few key areas of natural resources. It will invest in energy, agriculture, base metals, and precious metals and minerals. That includes exciting areas like alternative energy directly and upstream in metals like lithium. Additionally, it includes classic commodities in agriculture and forest products.
The strategy expects that between 30% and 50% of its portfolio will allocate to energy firms. It expects to allocate 20% to 40% to agriculture firms. The rest of the portfolio falls into the other areas. For investors looking for an active commodity approach, CCNR may be one to watch as it begins life in the ETF world.
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