A sound investment process and strong management team underpin iShares MSCI Global Mtls&Mng Prdcrs ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and yield exposure compared with category peers. A high quality exposure means holding stocks that are consistently profitable, growing, and have solid balance sheets. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

BHP Billiton

Rio Tinto plc Sponsored

Freeport-McMoRan

Nucor

American Airlines

Steel Dynamics

Reliance Steel & Aluminum

ArcelorMittal

Southern Copper

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. iShares MSCI Global Mtls&Mng Prdcrs ETF earns an Above Average Process Pillar rating. The largest contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Excellent risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. Lastly, the process is limited by its parent firm's risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.1 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the MSCI ACWI Select Metals & Mining Producers ex Gold and Silver Investable Market Index.  The fund will invest at least 80% of its assets in the component securities of the index and in investments that have economic characteristics that are substantially identical to the component securities of the index. The index measure the combined performance of equities of companies in both developed and emerging markets that are primarily involved in the extraction or production of diversified metals and the production of aluminum or steel and in the mining of precious metals and minerals. It is non-diversified. 

 The portfolio is overweight in basic materials by 49.8 percentage points in terms of assets compared with the category average, and its financial services allocation is similar to the category. The sectors with low exposure compared to category peers are energy and industrials, underweight the average by 27.8 and 8.1 percentage points of assets, respectively. The portfolio is composed of 345 holdings and is quite concentrated. More concretely, 50.1% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 23.9% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 13% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

iShares’s team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. The team is well equipped, with an average of 18 years of portfolio management experience. Together, they manage a total of 257 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares MSCI Global Metals & Mining Producers ETF

PICK tracks a market-cap-weighted index of global metals mining, extraction or production firms, excluding gold and silver mining firms.

Inflation is likely to accelerate and investors should consider hedges against it. PICK has a competitive management fee, a meaningful dividend, and a relatively low percentage of U.S. equities (for a global fund). The Fund's exclusion of silver and gold miners is a drawback, and the Fund has not performed well relative to the broad market and one of its competitors.

Bullish On Metals And Mining - Get Your PICK?

The iShares MSCI Global Metals & Mining Producers ETF has performed well of late, driven by the strong rally in copper and iron ore prices. The ETF is already trading at a large discount to the broader market, and the metal price recovery should further support the valuation argument. The main risk comes from the PICK's high beta to the overall US market and the increasing risk of a sharp correction amid widespread optimism of interest rate cuts.

PICK: Metal Recovery To Further Improve Valuation Discount

Goldman Sachs Physical Gold ETF

GraniteShares Gold Shares

Global X DAX Germany ETF

Xtrackers MSCI Germany Hedged Equity ETF

Invesco DB Precious Metals Fund

iShares MSCI Germany ETF

iShares MSCI Germany Small Cap ETF

First Trust Germany AlphaDEX Fund

Franklin FTSE Germany ETF

Wisdomtree Efficient Gold Plus Gold Miners Strategy Fund

VanEck Vectors Gold Miners ETF

MicroSectors Gold Miners 3X Inverse Leveraged ETN

VanEck Junior Gold Miners ETF

MicroSectors Gold Miners 3X Leveraged ETN

SPDR Gold Trust

Credit Suisse X-Links Gold Shares Covered Call ETN

SPDR Gold MiniShares Trust

Aberdeen Standard Precious Metals Basket Trust

U.S. Global GO GOLD and Precious Metal Miners ETF

Global X Gold Explorers ETF

iShares Currency Hedged MSCI Germany ETF

iShares Gold Trust

iShares Gold Strategy ETF

iShares Gold Trust Micro

FT Cboe Vest Gold Target Income ETF

VanEck Merk Gold Trust

Sprott Physical Gold Trust

iShares MSCI Global Gold Miners ETF

Sprott ESG Gold ETF

Sprott Junior Gold Miners ETF

Sprott Gold Miners ETF

Aberdeen Standard Gold ETF Trust

The German stock market has gone parabolic in an exceptionally strong move, after meandering over the summer months with sub-par economic releases. The surface reason for this division is that the vast majority of German earnings are not driven by the domestic economy but by their multinational operations.

There Could Be A Simple Explanation For The Dax Moonshot Move

Albemarle

Global X Copper Miners ETF

Global X Lithium & Battery Tech ETF

Sociedad Quimica Y Minera De Chile

The signs pointing toward the resurgence of the global commodity boom... China's critical role in demand … the cases for aluminum, copper, and lithium… specific trade ideas for you.

The “Second Act” of this Boom is About to Start

PICK is a global metals and miners ETF. The fund has underperformed YTD and has cut its dividends. A cheaper valuation, combined with a weaker dollar and higher commodity prices, could lead to better results moving forward.

PICK: Recent Developments

Base metals prices have declined significantly since their highs in 2022, impacting the performance of the iShares MSCI Global Metals & Mining Producers ETF. Chinese economic weakness and rising interest rates have contributed to the decline in base metals prices. Despite the current bearish trend, factors such as inflation, green energy initiatives, Chinese demand, and U.S. interest rates suggest potential buying opportunities for base metal-producing companies.

PICK On Price Weakness: Leave Room To Add On Further Declines

Industrial metals prices are recovering and remain undervalued, suggesting a potential resumption of its long-term bull market. The iShares MSCI Global Metals & Mining Producers ETF is already deeply undervalued relative to the broader market and gold miners and is set to resume its outperformance. The PICK is particularly attractive for investors with high bond exposure due to its close correlation with inflation expectations.

Metal Price Recovery To Launch PICK Higher

The iShares MSCI Global Metals & Mining Producers ETF offers exposure to the metals and mining sector, but has underperformed compared to the broader market. The fund's portfolio consists of diverse mining companies, with BHP Group, Rio Tinto, and Vale S.A. being the largest holdings. PICK has a high dividend yield and a diversified portfolio, making it attractive for income-focused investors, but it comes with risks related to the cyclical nature of the industry and geopolitical factors.

PICK: Not My Pick

MP Materials

Energy Fuels

VanEck Rare Earth/Strategic Metals ETF

Escalating geopolitical tension puts commodities in the spotlight

Huge Gains Are Coming (Not AI)

Demand for basic materials is expected to remain high due to global population growth, increasing living standards, and investment in infrastructure and renewable energy. The iShares MSCI Global Metals & Mining Producers ETF offers exposure to a globally diversified basket of major producers in the basic materials sector. The fund is subject to geopolitical risks and has exhibited significant volatility since its inception, but offers strong returns and increased portfolio diversification.

PICK: Rising Global Demand For Materials Creates Opportunity For Long-Term Investors

The current trend of high and rising Treasury yields suggests the iShares MSCI Global Metals & Mining Producers ETF is well placed, particularly if inflation expectations move higher. Based on current bond yields and inflation expectations, PICK is extremely undervalued relative to both gold prices and global equities, with 50% upside potential.

PICK: Rising Yields Offer A Tactical Opportunity In Industrial Metals Miners

The iShares MSCI Global Metals & Miners ETF is down 17.6% over the past year. That presents an excellent opportunity for investors. The PICK ETF pays distributions twice a year and with the price drop now has a TTM yield of 6.7%.

PICK: Undervalued Metals And Miners ETF Yields 6.7%

Industrial metals prices and equities have been extremely closely correlated with inflation expectations and actual CPI over the past decade, far more so than in the case of gold. With 10-year inflation expectations now sitting at just 2.2%, the iShares MSCI Global Metals & Mining Producers ETF offers investors a way to benefit from a recovery in long-term inflation.

PICK: Forget Gold, Industrial Metals Are The Real Inflation Hedge

iPath Series B Bloomberg Precious Metals Subindex Total Return ETN

While gold equities were up almost twice as much as gold in January, they were down more than twice as much in February. On February 13, B2Gold announced an agreement to acquire junior developer Sabina Gold & Silver in an all-share transaction.

Gold M&A A Bright Spot Amid Volatility

iPath Series B Bloomberg Platinum Subindex Total Return ETN

GraniteShares Platinum Trust

Aberdeen Standard Physical Platinum Shares ETF

Demand for precious metals could steadily increase as the EV market and use of semiconductors grows.

Investing in Platinum ETFs

The rise in the PICK relative to the price of the underlying metals index and the drop in inflation expectations suggest the recent rally may be overextended. The outperformance relative to metals prices has seen expectations of earnings, free cash flows, and dividend payments decline sharply.

PICK: Short-Term Headwinds But Long-Term Value

Invesco DB Base Metals Fund

SPDR S&P Metals & Mining ETF

Here are some of the largest exchange-traded funds focused on the metals industry.

Investing in Metals ETFs

The metals and mining sector is extremely cheap relative to its own history and the broader market, with a free cash flow yield of over 12%. The sector is highly correlated with U.S. inflation expectations and should continue to outperform in the event of continued high inflation rates.

PICK: 3 Reasons To Own The Metals And Mining Sector

Invesco DB Commodity Index Tracking Fund

Fidelity Stocks for Inflation ETF

Horizon Kinetics Inflation Beneficiaries ETF

Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

Invesco Dynamic Energy Exploration & Production ETF

SPDR SSgA Multi-Asset Real Return ETF

United States Natural Gas Fund LP

United States Oil Fund LP

Vanguard Short-Term Inflation-Protected Securities ETF

Energy Select Sector SPDR Fund

Good, but not as well as hoped. Inflation-hedge ETFs have generally been successful in minimizing losses during the current inflationary environment, less so at generating positive returns.

How Have Inflation-Hedge ETFs Fared This Year?

If Moore's Law is ending, then computing technology could contribute to mined material inflation.

Surprise! This Mining ETF Might Be a Compelling Addition to Your Tech Stock Portfolio

Inflation, labor shortages, supply chain constraints and rising energy costs have negatively impacted the mining industry in the first half of 2022. Now that inflation appears to have peaked and as the global economy recovers, prices of copper, nickel and iron ore are starting to rise again.

PICK: Good Time To Add A Mining And Metals ETF, This Pick Pays A 9% Yield

It is not the right time to buy iShares MSCI Global Metals & Mining Producers ETF, PICK. If you try to chase its high dividend yield, you might fall into a dividend yield trap.

PICK: Dividends At Risk And Upside Is Limited

PICK is a diversified global metals & mining ETF. It is a solid inflation hedge, has outperformed these past few months, and yields 5.8%, a solid combination.

PICK: Global Metals And Mining ETF, Effective Inflation Hedge, 5.8% Yield

PICK remains undervalued. Based on conservative earnings estimates, the valuation implies an elevated risk premium. One's implied IRR at present prices, by investing in PICK, could safely be above 15%.

PICK: Metals And Mining Stocks Remain Undervalued Even With Recession Concerns

Agnico Eagle Mines

Yamana Gold

Equinox Gold Corp

Franco-Nevada C

Barrick Gold

Hecla Mining

Harmony Gold Mining Co Ltd

Newmont Mining

Novagold Resources

Pan American Silver

Royal Gold

Global X Silver Miners ETF

Amplify Junior Silver Miners ETF

Wheaton Precious Metals

10 resource specialists and contributors to MoneyShow.com highlight their favorite stocks and ETFs for investors seeking exposure to gold and silver.

News for iShares MSCI Global Metals & Mining Producers ETF ETF (PICK)