My take on the IQ Global Resources ETF (GRES)

As many investors are looking for ways to hedge against inflation, a brand new ETF presents an interesting alternative. The IQ ARB Global Resources ETF (NYSE: GRES) invests in a well diversified spectrum of commodity linked equities both in the US and internationally. The majority of the fund is international however, with only 18% of the fund invested in the US.

It also has the ability to go short via purchasing short ETFs to hedge market risk. In fact currently the IQ ARB Global Resources Fund holds 10% of its assets in Ultra Short ETFs. The Ultra Short exposure and the monthly rebalancing between sectors within the commodity space make this unique among commodity/inflation ETFs.

Since the fund is brand new I would hold off on purchasing the fund until it has more of a track record. Between the monthly rebalancing and ability to use ultra shorts ETFs (which I do not like for long term investments) I want to see how this fund performs over 6 months to a year before I jump in.

GRES was up 0.73% to $24.69/share today.