Industry Distribution (estimated for 2025):

• Energy: 35%
• Materials: 30%
• Agriculture: 20%
• Water: 10%
• Forestry: 5%

Top 3 Markets and their Percentage Shares (estimated for 2025):

• USA: 40%
• China: 25%
• Europe: 20%

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) invests in companies engaged in the extraction and processing of natural resources. Revenues mainly come from the energy, materials, and agriculture sectors, with the energy sector accounting for the largest share.

The top markets for the fund are the USA, China, and Europe. These markets are leading in the demand for natural resources, as reflected in the high percentage shares. The USA leads with a share of 40%, followed by China with 25% and Europe with 20%. This distribution demonstrates the fund's global orientation and its dependence on the economic conditions in these key regions.

Production: FlexShares Trust is a provider of exchange-traded funds (ETFs) and does not produce any physical products itself.

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (ARCA:GUNR) is an ETF that invests in companies operating in the natural resources sector. These companies are globally distributed and operate in different regions depending on the specific natural resources they extract or process.

Since FlexShares does not manufacture physical products but offers financial products, there are no specific production sites. The fund invests in a variety of companies worldwide engaged in commodity extraction and processing.

Current Strategy: Diversification and Sustainability

Focus on ESG Investments: FlexShares Trust pursues a strategy that targets sustainable investments, particularly through the integration of Environmental, Social, and Governance (ESG) criteria.

Portfolio Expansion: The company plans to expand its portfolio through investments in emerging markets and innovative technologies in the natural resources sector.

FlexShares Trust relies on a diversified investment strategy aimed at benefiting from global trends in the commodity industry. The focus is on companies engaged in the extraction and processing of natural resources, with a particular emphasis on sustainable and responsible practices.

By adapting to the increasing demand for ESG-compliant investments and tapping into new markets, FlexShares Trust aims to secure long-term growth and stable returns for its investors.

Current data on imports: Not specifically available for 2025.

Estimation: The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) invests in companies engaged in the extraction and production of natural resources. Typically, this includes commodities such as oil, gas, metals (such as copper, aluminum, gold), and agricultural products.

Main importing countries:

• Oil and Gas: Saudi Arabia, Russia, USA
• Metals: Chile (copper), Australia (iron ore), China (various metals)
• Agricultural Products: Brazil, USA, Argentina

The fund invests in companies operating in these countries to benefit from the global demand for natural resources. The exact composition of imports depends on the specific companies in the fund and may change depending on market conditions.

Competitive Advantage: Moderate to strong (Estimated 2025)

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (ARCA:GUNR) is an exchange-traded fund (ETF) that invests in companies engaged in the extraction and processing of natural resources. The competitive advantage of this fund arises from several factors:

1. Diversification: The fund offers broad diversification across various natural resources and geographic regions, reducing risk for investors while increasing opportunities for returns.

2. Index-based Strategy: By tracking the Morningstar Global Upstream Natural Resources Index, the fund benefits from a systematic and rule-based investment strategy based on thorough market analysis.

3. Market Access: The ETF enables investors to easily and cost-effectively access a diversified portfolio of companies in the natural resources sector, which would otherwise be challenging for many individual investors.

Overall, the fund provides a solid competitive advantage through its diversification, systematic investment strategy, and easy market access. However, the competitive advantage should be considered moderate to strong, as it is also influenced by external factors such as commodity price fluctuations and geopolitical risks.

Institutional Investor Ownership: Approx. 70% (estimated for 2025 based on historical trends)

Insider Buys/Sells: No significant insider transactions in the last 12 months

The institutional investor ownership in FlexShares Trust - FlexShares Morningstar Global Upstream Natural Resources Index Fund (ARCA:GUNR) is traditionally high, as ETFs are often preferred by institutional investors. The estimated 70% reflects the ongoing attractiveness of this fund to large investors.

Insider transactions are less relevant for ETFs, as they are typically held by institutional investors rather than individuals. No significant insider buys or sells have been reported in the last 12 months, which is typical for this type of fund.

Market share of GUNR: Estimated at around 2-3% (2025)

Main competitors and their market shares:

1. iShares Global Energy ETF (IXC): about 5%
2. SPDR S&P Global Natural Resources ETF (GNR): about 4.5%
3. Vanguard Energy ETF (VDE): about 4%
4. Invesco DB Commodity Index Tracking Fund (DBC): about 3.5%
5. First Trust Global Tactical Commodity Strategy Fund (FTGC): about 3%
6. FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR): about 2-3%
7. VanEck Vectors Natural Resources ETF (HAP): about 2.5%
8. SPDR S&P Oil & Gas Exploration & Production ETF (XOP): about 2%

Economic moat of GUNR:

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) has a moderate economic moat, mainly characterized by its diversification and focus on upstream resources. This strategy allows the fund to benefit from commodity price increases, making it attractive during times of rising commodity prices.

Compared to its competitors, GUNR offers a specific niche, although not as broad as some of the larger ETFs covering a wider range of energy and commodity investments. This can be seen as an advantage for investors looking to specifically invest in upstream resources, but it can also be considered a disadvantage for those seeking broader diversification.

Larger competitors like iShares Global Energy ETF and SPDR S&P Global Natural Resources ETF have a stronger economic moat due to their greater market presence and broader diversification, potentially providing them with more stability in volatile markets.

Managed Assets: approximately 5 billion USD (2025) Annual Total Expense Ratio: 0.46% (2025) Performance of the last 5 years: average 8% p.a.

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) provides investors with access to a diversified portfolio of companies operating in the natural resources sector. The fund focuses on companies involved in energy, agriculture, metals, and water, ensuring broad diversification within the sector.

In recent years, the fund has achieved an average annual return of about 8%, indicating solid performance in the underlying industries. The annual total expense ratio of 0.46% is competitive and offers investors a cost-effective way to invest in this sector.

Given global trends in the demand for natural resources, particularly driven by growth in emerging markets and ongoing urbanization, the fund could continue to benefit from positive market conditions. Diversification across various commodity categories also provides some protection against volatility in individual commodity markets.

Overall, the GUNR fund could represent an attractive investment opportunity for investors interested in long-term participation in the natural resources sector and seeking to capitalize on global growth opportunities.

Dividend Yield: 2.5% (2024)

The FlexShares Morningstar Global Upstream Natural Resources Index Fund (ARCA:GUNR) regularly pays a dividend. The dividend yield was approximately 2.5% in 2024.

The payouts are relatively reliable as the fund invests in companies operating in the commodity sector that often generate stable cash flows. These companies are generally able to pay dividends even in economically challenging times.

However, it is important to note that dividend yields can fluctuate depending on the performance of the underlying companies and market conditions. Therefore, investors should regularly review the financial reports and distribution policy of the fund.