BHP Billiton

Rio Tinto plc Sponsored

Freeport-McMoRan

American Airlines

Nucor

Steel Dynamics

Reliance Steel & Aluminum

ArcelorMittal

iShares MSCI Frontier 100 ETF

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.

PICK ETF has a low P/E ratio and high dividend yield but struggles due to a weak technical situation and features high concentration risk. The ETF's performance is heavily influenced by the US Dollar Index and its significant exposure to both US and foreign SMID caps. PICK's top holdings, including BHP, Rio Tinto, Freeport-McMoRan, and Glencore, require close monitoring for fundamental and technical cues.

PICK: Dollar Strength Weighs, Frustration Continues

Cameco

Kinross Gold

Investors are increasingly looking for robust mining stocks to buy as we approach the second half of 2024. The recovery of the global economy has fueled demand for various metals, from precious metals like gold and silver to base metals like copper and nickel.

3 Mining Stocks to Buy to Unearth Precious Profits

Increasing demand for base metals is driven by green energy initiatives, supporting higher prices. Copper prices have rallied significantly in Q2 2024. Sanctions on Russia and rising nonferrous metals prices are bullish for mining companies, creating potential investment opportunities in the sector.

PICK: Mining Companies Could Outperform The Metals

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.

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