Global Idea: iShares North American Natural Resources ETF (IGE)

Research Notes For 16 to 20 June > https://www.unum.capital/post/r1620june

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The iShares North American Natural Resources ETF (IGE) offers investors a focused way to gain exposure to the vital natural resources sector within North America. This ETF tracks an index composed of North American equities involved in various facets of the natural resources industry, including oil and gas, mining, and forestry companies. For those looking to diversify their portfolio beyond traditional sectors or to capitalize on specific commodity trends, IGE presents a compelling option.

One key reason to consider IGE is its targeted exposure to a critical sector. Natural resources are fundamental to global economic activity, and demand for energy, metals, and other raw materials remains consistently strong, albeit with cyclical fluctuations. By investing in IGE, investors gain access to a basket of established companies that are directly involved in the exploration, production, processing, and transportation of these essential resources. This can provide a degree of inflation hedge and potentially benefit from periods of rising commodity prices.

The development and potential breakout of a 17-year base has piqued our interest and alerts us to get ready for a potential base breakout above $47.90.

Lester Davids

Senior Investment Analyst: Unum Capital