BlackRock World Mining (BRWM) up to a new target of 10.0% -
GlobalX Copper Miners ETF (COPG) sold completely
I have sold my position in GlobalX Copper Miners ETF, making a nice profit, and invested nearly all the proceeds in BlackRock World Mining Trust, increasing it to 10.0%.
The chart below shows that the two shares have generally traded in line over the last five years. The BRWM line (blue) does not include dividends, which would substantially improve the returns achieved. However, in the last month, a substantial gap has opened.
Why now? Copper has had a good run (at its highest in a year), pushing the ETF to its highest in over a year. BRWM, on the other hand, has hardly moved, yet copper is its largest exposure at 22.6 %. Rather than profit-taking, should copper push on to new highs, I think there is a good chance that other commodities will follow suit. Gold is hitting all-time highs, yet gold miners (13.4% of the BRWM portfolio) have hardly moved.
BRWM goes ex-dividend its final dividend of 17p for 2023 on Thursday, and I'd like the dividend. That yields 3.3% on its own. If it pays a similar total dividend next year, the yield on the shares is 6.5%.
Lastly, BRWM stands at a 7.2% discount to NAV. Should commodity prices revive, that could narrow towards par.
As of 31st January:
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