Is inflation on the rise once more? It’s hard to know the true inflation landscape with both a change in Federal data reporting and the government shutdown. Still, last month produced a concerning combination of soft jobs data and stubborn inflation. This past week, the New York Federal Reserve pointed out rising short-term inflation as well as an increase in one-year horizon inflation. All of these factors may speak to the case for inflation-sensitive natural resources that historically benefit from rising prices as a target for investment.

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ETFs can provide exposure to the category with its historical sensitivity to inflation compared to traditional equities and bonds. An active ETF in particular can offer the deep, bottom-up fundamental research to identify the strongest contenders therein. The T. Rowe Price Natural Resources ETF (TURF) offers just that mix of active strength and natural resources exposure.

The active ETF focuses on those inflation-sensitive stocks for a 44 basis point fee. Specifically, TURF invests in global natural resources companies, including those in the upstream extraction of mineral, energy, or agricultural products. Leaning on growth and value views, its managers apply fundamental metrics to craft a concentrated portfolio of 60-80 stocks. 

Together, that has helped the fund, which launched in June, return 9.5% over the last three months, per ETF Database data. That has outperformed its ETF Database Category average in that time. Notable stocks within the fund include Nutrien Ltd. (NTR) and BHP Group (BHP).

NTR, a crop nutrient company, operates in areas like potash, nitrogen, and phosphates for agricultural, industrial, and feed customers. The company has returned 39.1% YTD with that approach, per YCharts data. BHP, meanwhile, focuses on iron and copper ore as well as various types of coal. The company, founded in 1885, has returned 19.7% YTD for its investors, according to YCharts data

Looking ahead, inflation-sensitive stocks, which include those natural resources companies whose place in supply chains see them benefit from rising prices, could make for a worthwhile addition to portfolios. They offer upside as well as a potential defensive benefit should other market segments struggle in stubborn inflation. Overall, then, the active ETF TURF, then, may be worth watching for how it performs to close out 2025.

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