Three natural-resource ETFs to hedge after hot April CPI

April’s Consumer Price Index rose 0.6% month-over-month and 3.8% year-over-year, the highest annual reading since May 2023. The hotter-than-expected inflation data coincided with increased investor interest in exchange-traded funds tied to energy, metals and agriculture. The S&P Global Natural Resources Index has outpaced the S&P 500 by more than 12% year to date.

The Amplify Energy & Natural Resources Dividend Income ETF (NDIV) targets high-dividend energy and natural-resource equities and overlays a covered-call strategy. NDIV had returned about 37% year to date. As of April 30, the fund reported a 30-day SEC yield of 4.67% and a distribution rate of 10.79%. NDIV held roughly 40 positions and listed Atlas Energy Solutions as its largest holding as of May 12. The fund’s expense ratio is 0.59%, assets under management are about $28 million, and its inception date is August 24, 2022.

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) tracks companies involved in exploration and extraction. The index-based fund held more than 180 securities as of May 11, including Exxon Mobil and BHP Group, and provides country diversification across producers. GUNR charges a 0.46% expense ratio and manages about $7.4 billion. The fund’s inception date is September 16, 2011.

The Cohen & Steers Natural Resources Active ETF (CSNR) is an actively managed fund that applies a risk-parity framework to allocate across energy value chains, metals, mining and agriculture. CSNR held 65 positions as of March 31, including Exxon Mobil and Newmont. The fund’s structure allows it to change weightings in response to supply pressures, geopolitical events or shifting scarcity signals. CSNR’s expense ratio is 0.49%, assets under management are near $97 million, and its inception date is February 4, 2025.

NDIV emphasizes income generation through a covered-call approach, GUNR provides index-based upstream exposure with broad diversification, and CSNR offers active allocation across natural-resource sectors. Each fund connects to commodity prices and company revenues at different points in the production chain.

The U.S. Senate is expected to confirm Kevin Warsh as the next Federal Reserve chair. Controlling inflation will be a central task for incoming Fed leadership, and persistent inflation pressures have focused attention on producers of energy, metals and agricultural goods.

VettaFi LLC serves as the index provider for NDIV and receives an index licensing fee. VettaFi is not the issuer, sponsor or promoter of NDIV and has no responsibility for the fund’s administration, marketing or trading.