For advisors and investors alike, one key sector many have kept a close eye on amid the 2026 Iran war is oil, and energy prices as a whole. 

Granted, this should not come as a surprise. Whenever geopolitical conditions escalate in the Middle East, oil trade via the Strait of Hormuz tends to suffer grievously, and this conflict is no exception. 

In recent weeks, the price of oil has whipsawed up and down, fluctuating by what the latest headlines infer about the conflict. For instance, oil prices fell on Wednesday following reports that the U.S. was sending a peace plan in hopes of ending the conflict in Iran. 

It should go without saying that unstable oil prices may not bode well for pure-play energy exposure within one’s portfolio. However, those who want to remain engaged with the energy industry may want to do so through a more diversified take. 

The Advantages of Diversified Real Asset Exposure

As an example, take a closer look at the FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR). This fund from the team at Northern Trust Asset Management helps investors gain exposure to real assets through a highly diversified portfolio. 

GUNR’s investment philosophy focuses on providing similar results to that of the Morningstar Global Upstream Natural Resources Index. By doing so, the fund provides a highly diversified portfolio that covers a variety of different natural resources. 

Energy remains the top sector within GUNR’s portfolio, accounting for 32.23% of portfolio weight as of March 24, 2026. However, 28.55% of GUNR’s investments are tied to the agriculture sector, while 26.59% lie in the metal sector. This broad exposure helps GUNR tackle momentum from different sectors of natural resources, without being beholden to an individual sector to see results. Best of all, diversification is not the only perk that GUNR is offering.

“GUNR does a very good job of capturing intermediate term inflation, so five to 15 years,” noted Chris Huemmer, SVP and director of ETF & Funds Strategy at Northern Trust Asset Management, at Exchange 2026. “But in addition to that, it does offer a hedge from a geopolitical risk standpoint. It does capture some of that runup that we’ve seen in oil. From that perspective, GUNR’s done really well.”

Thus far, GUNR’s investment approach has been backed up by an impressive performance this year. As of February 28, 2026, the fund’s NAV has increased 20.88% year-to-date.

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