GUNR , your thoughts and opionions please [FlexShares Morningstar® Global Upstream Natural Resources]

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ukwildcat
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GUNR , your thoughts and opionions please [FlexShares Morningstar® Global Upstream Natural Resources]

Post by ukwildcat » Sun Apr 15, 2018 1:08 pm

I am an index funds investor guy with Schwab and Vanguard Index funds. My financial advisor, independent assets under management, is recommending a fund I really don't understand. GUNR is a FlexShares Morningstar Global Upstream Natural Resources Index Fund. Flex Shares states this is a balanced exposure to three traditional(30% each in Agriculture, Energy and Metals) and two nontraditional (5% timber and water) natural resources sectors.

Financial Advisor is recommending GUNR to buy after selling MLPZX. MLPZX was 6% of total account assests. All index funds with Schwab and Vanguard have are doing well. My thoughts are just buy more index funds, which I understand, or take a chance with GUNR. In researching GUNR, I noticed Vanguard has VAW which is MSCI US investable market materials 25/50 index. Whatever that is?

Need thoughts and opinions about going forward with GUNR or VAW in an IRA account. Thanks in advance!!

Watertree

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cinghiale
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Re: GUNR , your thoughts and opionions please [FlexShares Morningstar® Global Upstream Natural Resources]

Post by cinghiale » Sun Apr 15, 2018 1:30 pm

Well, here’s what you would be getting. Expense ratio for the fund appears to be .46%.
Top 10 Holdings (36.41% of Total Assets)Get Quotes for Top Holdings
Name Symbol % Assets
Exxon Mobil Corp XOM 5.07%
Monsanto Co MON 4.79%
Chevron Corp CVX 3.96%
BHP Billiton Ltd BHP.AX 3.93%
Nutrien Ltd NTR.TO 3.60%
Rio Tinto PLC RIO.L 3.45%
Glencore PLC GLEN.L 3.43%
Archer-Daniels Midland Co ADM 2.86%
Royal Dutch Shell PLC RDSA.L 2.66%
Tyson Foods Inc TSN 2.66%
Take a look at the rest of the fund’s holdings and ask yourself why you think they will outperform the total stock index in the coming years. Or, better, have your financial advisor explain his/her rationale for investing in this particular cluster of sectors.

Investing 6% of your portfolio is no small matter. Also, investing in something you do not understand is, and should be, a red flag.
"We don't see things as they are; we see them as we are." Anais Nin | | "Sometimes the first duty of intelligent men is the restatement of the obvious." George Orwell

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cinghiale
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Re: GUNR , your thoughts and opionions please [FlexShares Morningstar® Global Upstream Natural Resources]

Post by cinghiale » Sun Apr 15, 2018 1:32 pm

Oh, dear. I’ve forgotten my manners.

Watertree, welcome to the forum!
"We don't see things as they are; we see them as we are." Anais Nin | | "Sometimes the first duty of intelligent men is the restatement of the obvious." George Orwell

ukwildcat
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Joined: Fri Jun 23, 2017 10:16 am

Re: GUNR , your thoughts and opionions please [FlexShares Morningstar® Global Upstream Natural Resources]

Post by ukwildcat » Sun Apr 29, 2018 9:19 pm

Thanks for the advice. After doing more research, no GUNR for me. Bought a balanced mutual fund 60%stock 40% bonds and am sleeping well each night.

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unclescrooge
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Re: GUNR , your thoughts and opionions please [FlexShares Morningstar® Global Upstream Natural Resources]

Post by unclescrooge » Sun Apr 29, 2018 9:25 pm

cinghiale wrote:
Sun Apr 15, 2018 1:30 pm
Well, here’s what you would be getting. Expense ratio for the fund appears to be .46%.
Top 10 Holdings (36.41% of Total Assets)Get Quotes for Top Holdings
Name Symbol % Assets
Exxon Mobil Corp XOM 5.07%
Monsanto Co MON 4.79%
Chevron Corp CVX 3.96%
BHP Billiton Ltd BHP.AX 3.93%
Nutrien Ltd NTR.TO 3.60%
Rio Tinto PLC RIO.L 3.45%
Glencore PLC GLEN.L 3.43%
Archer-Daniels Midland Co ADM 2.86%
Royal Dutch Shell PLC RDSA.L 2.66%
Tyson Foods Inc TSN 2.66%
Take a look at the rest of the fund’s holdings and ask yourself why you think they will outperform the total stock index in the coming years. Or, better, have your financial advisor explain his/her rationale for investing in this particular cluster of sectors.

Investing 6% of your portfolio is no small matter. Also, investing in something you do not understand is, and should be, a red flag.
If I had to guess, based on the percentage allocation and composition I'd say your advisor is looking for an inflation hedge, and using this fund as a proxy for a commodity fund.

It's not designed to beat the market, just lower volatility during inflationary times.

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