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BLACKROCK WORLD MINING: For investors looking for growth and potential dividends


BLACKROCK WORLD MINING: For investors looking for growth and potential dividends

What is it?

As the name suggests, it invests in mining and metals assets. 

It is managed by the world’s largest funds firm and is suited to investors looking to grow their investment and potentially pocket dividend income.

What does it invest in?

It puts most of its money in listed miners, but may also buy actual physical metals or scoop royalties derived from the production of metals or minerals. Its largest holdings are commodities giants.

What do the experts like?

Tom Stevenson, investment director at Fidelity Personal Investing, points out that political uncertainty has increased demand for gold, considered a traditional safe haven. 

And increasing production of electric vehicles has caused a surge in demand for the metals such as cobalt and lithium used in batteries. 

As the US-China trade war has pushed down prices of other metals, Stevenson believes the trust would be a good pick for investors who believe the two countries will resolve their differences.

Any downsides?

Until there is any sign of a truce between Trump and China’s Xi Jinping, Stevenson says, the shares will likely remain depressed.

 



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