First Trust Global Resource Solution Fund too amorphous to add to portfolio, adviser says

By Aleesia Forni

Columbus, Ohio, Nov. 17 - The First Trust Global Resource Solution Fund's ability to profit from macro-economic trends like population growth, natural resource depletion and technology advances is a "big maybe," according to Russell Wild, a fee-only financial planner in Allentown, Pa. and author of Exchange-Traded Funds for Dummies.

Wild said the fund's focus is "kind of amorphous."

With regard to population growth, Wild said, "we've got a pretty good idea of where that's going, but how is that going to affect the market?"

Wild added that natural resource depletion and technology advances bring up "lots and lots of maybes" and "lots of unknowns" for this fund.

The fund will also invest in the securities of companies with a focus on the effects of climate change.

"If ever there was a big unknown, it is climate change," Wild said. "Never mind how [climate change] is going to affect the market."

Wild said that even if these trends were predictable, "it's not to say that that is going to result in a boost to the bottom line in these companies."

"My guess is most people who are buying this are thinking they're going to hold it for a year or two, and they're going to do better than the broad market because, well, everybody's talking about the environment and global change and natural resource depletion and therefore this is probably a hot field to be in," Wild said.

"And people who buy what's hot constantly shoot themselves in the foot," Wild said. "Thanks to all these new ETFs, that has become easier than ever."

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