The Elusive Diversified Natural-Resources Fund
Finding a balanced equity natural-resources fund can be challenging.
A diversified equity natural-resources fund may seem like an oxymoron for a niche category, but there's a lot of ground to cover (no pun intended) in this segment. This makes it more difficult than you might think to find a truly diversified equity natural-resources offering. (Whether it's better to get commodity exposure directly or through equity in commodity companies is a separate discussion, one that we've touched on here.)
Part of the problem is that the market's definition of diversified probably doesn't match the average investor's. Most investors perhaps intuitively think of a natural-resources fund as being roughly balanced between energy and materials stocks (agricultural, metals and mining, and chemical companies) with perhaps some REITs and utilities sprinkled in.
Kevin McDevitt does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.