Two ETFs To Play The Metals & Mining Industry

Among individual holdings, top stocks in the ETF include Cliffs Natural Resources Inc. (CLF),Walter Energy, Inc.. (WLT) and Carpenter Technology Corp. (CRS) with asset allocation of 3.75%, 3.57% and 3.52%, respectively.

iShares MSCI Glbl Metals & Mining Prdcrs (PICK)

The ETF seeks to match the price and yield performance of MSCI ACWI Select Metals & Mining Producers Ex Gold & Silver Investable Market Index.  This index measures the equity performance of companies in both developed and emerging markets that are primarily involved in the extraction and production of diversified metals, aluminum, steel and precious metals and minerals, excluding gold and silver.

Launched in Jan 2012, the fund has so far attracted AUM of $238 million. It has a trading volume of roughly 6,783 shares a day. The ETF is currently charging a net expense ratio of 39 basis points a year, with a dividend yield of 2.04%.

The fund currently holds 260 stocks with 99% sector weightage toward basic materials. The fund allocates nearly 53% of the assets in the top 10 firms, which suggests that company-specific risk is somewhat high, as the top 10 holdings dominate half of the returns. Among individual holdings, top three stocks in the ETF include BHP Billiton Limited (BHP), BHP Billiton plc (BBL) and Rio Tinto plc (RIO) with asset allocation of 12.5%, 7.6% and 7.42%, respectively.

The fund is widely diversified across various countries, and UK tops the list, holding 20.87% of the fund, followed by Australian and American securities. These three nations make up for nearly 51% of the assets.

This article is brought to you courtesy of Eric Dutram.

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