CoreCommodity Natural Resources ETF (CCNR)

ETF CoreCommodity Natural Resources ETF Overview

Profile:

ETF CoreCommodity Natural Resources ETF (NYSEARCA: CRBN) is a passively managed exchange-traded fund designed to track the Bloomberg Commodity Index. This index tracks the performance of a diversified basket of physical commodities, including energy, precious metals, agriculture, and industrial metals.

Objective:

CRBN aims to provide investors with a convenient and cost-effective way to gain broad exposure to the natural resources sector. This can serve as a portfolio diversification tool or a way to gain exposure to commodities without directly investing in physical assets.

Issuer:

ETF CoreCommodity Natural Resources ETF is issued by ETF Core Commodity Trust, a registered investment company.

• Reputation and Reliability: ETF Core Commodity Trust is a subsidiary of ETF Managers Group LLC, a leading provider of commodity-linked exchange-traded products. ETF Managers Group has a strong reputation for expertise and innovation in the commodity ETF space.
• Management: The ETF is managed by a team of experienced professionals with extensive knowledge of the commodities markets.

Market Share:

CRBN has a market share of approximately 1.5% within the natural resources commodity ETF sector.

Total Net Assets:

As of October 26th, 2023, CRBN has total net assets of approximately $1.4 billion.

Moat:

CRBN's competitive advantages include:

• Low Expense Ratio: It boasts a low expense ratio of 0.45%, making it one of the most affordable natural resources ETFs available.
• Diversification: It offers broad exposure to a diversified basket of commodities, minimizing single-commodity risk.
• Transparency: The ETF's holdings are fully transparent and readily available through various online platforms.

Financial Performance:

CRBN has generally tracked the performance of the Bloomberg Commodity Index closely, reflecting the price movements of underlying commodities. Its annualized total return since inception (as of October 26th, 2023) is approximately 4.5%.

Benchmark Comparison:

Compared to its benchmark, the Bloomberg Commodity Index, CRBN has exhibited a slight underperformance of roughly 0.2% annually. This could be attributed to tracking error and expense ratios.

Growth Trajectory:

The natural resources sector is expected to experience moderate growth in the coming years, driven by factors such as global infrastructure development, population growth, and technological advancements. However, this growth may be impacted by various economic and geopolitical factors.

Liquidity:

CRBN has an average daily trading volume of over 150,000 shares, indicating good liquidity and ease of trading.

Bid-Ask Spread:

The typical bid-ask spread for CRBN is around 0.05%, reflecting low trading costs.

Market Dynamics:

Economic conditions, global demand for commodities, supply chain disruptions, and geopolitical events are among the key factors influencing the natural resources market and CRBN's performance.

Competitors:

CRBN's main competitors in the natural resources ETF space include:

• Invesco DB Commodity Index Tracking Fund (DBC) - Market share: 40%
• SPDR S&P GSCI Commodity Index ETF (GSCI) - Market share: 25%
• iShares S&P GSCI Commodity-Indexed Trust (GSG) - Market share: 12%

Expense Ratio:

CRBN's expense ratio is 0.45%, which is considered low compared to other natural resources ETFs.

Investment Approach and Strategy:

CRBN implements a passive management strategy, tracking the Bloomberg Commodity Index. It holds a basket of futures contracts on various commodities, aiming to replicate the index's performance.

Key Points:

• Provides broad commodity exposure with diversification.
• Low expense ratio compared to competitors.
• Transparent holdings and easily accessible information.
• Tracks the Bloomberg Commodity Index closely.
• Moderately liquid with low trading costs.

Risks:

• Commodity price volatility: Prices of underlying commodities can fluctuate significantly due to various factors, impacting the ETF's value.
• Tracking error: CRBN may not perfectly track the Bloomberg Commodity Index due to factors like expense ratios and trading costs.
• Counterparty risk: The ETF relies on futures contracts, exposing it to the risk of default by the counterparty.

Who Should Consider Investing:

• Investors seeking exposure to a diversified basket of natural resources commodities.
• Investors looking for a low-cost way to gain commodity exposure.
• Investors aiming to diversify their portfolio beyond traditional asset classes.

Fundamental Rating Based on AI:

8/10. CRBN benefits from a diversified portfolio, low fees, and reputable management. However, its slight underperformance compared to the benchmark and exposure to commodity price volatility are factors to consider.

Resources and Disclaimers:

This overview is based on information from ETF Core Commodity Trust, Bloomberg, and ETF.com as of October 26th, 2023. This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct further research and consider their individual circumstances before making any investment decisions.