Natural Resources ETFs offer investors exposure to companies involved in the upstream production and processing of raw materials. These funds typically hold stocks of companies engaged in energy, agriculture, metals and mining, and other commodities. The core investment thesis is to capitalize on the global demand for raw materials, which is often driven by economic growth, infrastructure development, and population expansion. In a portfolio, these ETFs can serve as a hedge against inflation and a way to diversify away from traditional stocks and bonds, as commodity prices often move independently of broader financial markets.
The Natural Resources category is diverse, encompassing a variety of sub-groups with distinct focuses. The largest sub-group is Broad-based funds, which represent approximately 30.9% of the category’s assets under management (AUM). Following closely are Uranium & Nuclear Energy ETFs, making up about 27.5% of the market. The remaining assets are distributed among more specialized areas: Industrial Metals & Mining (16.8%), Water Resources (15.8%), Tech & Battery Metals (6.1%), Agribusiness (2.1%), Timber & Forestry (0.8%), and AgTech & Food Innovation (less than 0.1%). This breakdown allows investors to either gain diversified exposure through funds like the FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR) or target specific themes, such as uranium with the Global X Uranium ETF (URA) or water with the Invesco Water Resources ETF (PHO).
Performance & Flows Update (as of 9/16/2025)
The Equity: Thematic – Natural Resources category has demonstrated strong performance year-to-date (YTD), with a return of 30.01%. Investor sentiment has been mixed, however, with the category seeing net inflows of $499 million over the most recent 1-month period, but experiencing net outflows of $274 million YTD.
| Grouping | AUM ($MM) | 1M TR | YTD TR | 1M Flow | YTD Flow |
|---|---|---|---|---|---|
| Equity: Thematic – Natural Resources (53) | $34,639 | 6.62% | 30.01% | $499M | -$274M |
| Broad-based (12) | $10,693 | 5.97% | 24.36% | -$3M | -$582M |
| Uranium & Nuclear Energy (7) | $9,516 | 14.85% | 54.05% | $301M | $1,061M |
| Industrial Metals & Mining (8) | $5,803 | 1.88% | 40.49% | $126M | -$870M |
| Water Resources (6) | $5,484 | -1.16% | 13.93% | $6M | -$158M |
| Tech & Battery Metals (14) | $2,120 | 7.16% | 33.99% | $85M | $229M |
| Agribusiness (3) | $718 | 0.01% | 14.35% | -$15M | -$41M |
| Timber & Forestry (2) | $295 | 0.11% | -2.27% | -$2M | $82M |
| AgTech & Food Innovation (1) | $9 | -1.48% | 10.93% | $0M | $4M |
A closer look at the sub-groups reveals a significant divergence between performance and investor flows. The standout performer, Uranium & Nuclear Energy, recorded a 54.05% year-to-date (YTD) return while attracting over $1 billion in net inflows. In contrast, other high-performing areas saw significant outflows. Industrial Metals & Mining posted a 40.49% YTD return but experienced the largest outflows in the category at $870 million. Similarly, Broad-based funds returned 24.36% but saw net outflows of $582 million. Not all sub-groups were misaligned; Tech & Battery Metals posted a 33.99% return with corresponding positive inflows of $229 million. Interestingly, the Timber & Forestry sub-group, which had a negative YTD return of -2.27%, still attracted $82 million in net new assets.
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The summary data only scratches the surface. By creating a free account, you can access the complete Equity: Thematic – Natural Resources report and our interactive Natural Resources Dashboard to unlock critical insights that can help you make more informed decisions:
- Structure & Market Share: Analyze the category’s concentration, assets under management (AUM), and investor fund flows.
- Performance & Risk: Go beyond simple returns to compare funds on key risk-adjusted metrics like Sharpe Ratio, Alpha, and volatility.
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Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
