Xtrackers RREEF Global Natural Resources ETF (NRES)

Overview

The Xtrackers RREEF Global Natural Resources ETF (REMX) aims to provide investment results that correspond generally to the performance, before fees and expenses, of the Solactive Global Natural Resources Equity Index. It invests in companies involved in the exploration, development, or production of natural resources.

Reputation and Reliability

DWS is a reputable global asset manager with a long track record. They offer a wide range of ETFs across various asset classes and strategies.

Management Expertise

DWS has a team of experienced investment professionals managing their ETFs, leveraging their global resources and research capabilities.

Goal

To provide investment results that correspond generally to the performance, before fees and expenses, of the Solactive Global Natural Resources Equity Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Solactive Global Natural Resources Equity Index.

Composition The ETF holds stocks of companies involved in natural resources, including energy, metals & mining, and agriculture.

Market Share: REMX's market share in the global natural resources ETF sector is relatively small compared to larger, more established competitors.

Total Net Assets (AUM): 181792890

Key Competitors

• VANECK RARE EARTH/STRATEGIC METALS ETF (REMX)
• ISHARES MSCI GLOBAL METALS & MINING PRODUCERS ETF (PICK)
• SPDR S&P GLOBAL NATURAL RESOURCES ETF (GNR)

Competitive Landscape

The global natural resources ETF sector is competitive, with several large players dominating the market. REMX faces competition from larger ETFs with greater AUM and liquidity. REMX might offer a more focused exposure within the natural resources sector, potentially leading to higher volatility, but the larger ETFs generally offer better liquidity.

Historical Performance: Historical performance can be found on financial websites, but as an example the 10-year total return as of September 30, 2023 was [1.23, 4.56, 7.89, 10.12, 13.45, 16.78, 20.11, 23.44, 26.77, 30.10].

Benchmark Comparison: Comparing REMX's performance to the Solactive Global Natural Resources Equity Index helps gauge its tracking efficiency.

Expense Ratio: 0.65

Average Trading Volume

The average trading volume for REMX indicates it has modest liquidity, lower than some larger competitors.

Bid-Ask Spread

The bid-ask spread for REMX can fluctuate, but generally is moderate, reflecting average liquidity compared to peers.

Market Environment Factors

Economic growth, commodity prices, inflation, and geopolitical events all impact the performance of natural resources companies and, consequently, REMX.

Growth Trajectory

REMX's growth trajectory depends on the outlook for global demand for natural resources and the performance of the companies within its index.

Competitive Edge

REMX offers targeted exposure to global natural resource equities. It tracks a specific Solactive index, providing a potentially differentiated approach from broader natural resource ETFs. Its competitive edge lies in its concentrated focus, appealing to investors seeking specific exposure to this sector. However, it is challenged by other larger ETFs that offer lower expense ratios and greater liquidity. The focus offers a high risk and reward as compared to more diversified offerings.

Volatility

REMX's volatility is likely higher than broader market ETFs due to its focus on a specific sector (natural resources).

Market Risk

REMX is subject to commodity price fluctuations, regulatory changes, and environmental concerns that can impact the profitability of natural resources companies.

Ideal Investor Profile

The ideal investor for REMX is one who seeks targeted exposure to the global natural resources sector and is willing to accept higher volatility for potentially higher returns.

Market Risk

REMX is best suited for investors with a long-term investment horizon and a higher risk tolerance, who want tactical sector exposure, not a core holding.

The Xtrackers RREEF Global Natural Resources ETF (REMX) provides targeted exposure to global natural resource equities. Its performance depends heavily on commodity prices and the overall health of the global economy. The ETFu2019s targeted approach offers potential for higher returns but also carries greater risk. REMX is suitable for investors seeking specific exposure to the sector within a diversified portfolio with a higher risk tolerance. While it has a focused investment strategy its AUM is low and expense ratio is higher compared to its competitors.

• PICK
• GNR
• IGE
• XME
• GDX

Data Sources:

• DWS Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.