“Should the global economy come to a screeching halt, we won’t need as much coal, aluminum, or iron ore. Those fears are behind this recent pullback in commodity stocks. But this speed bump doesn’t alter the fact that long-term demand for energy and metals is going nowhere but up, particularly in emerging markets. ... EGShares Emerging Markets Metals/Mining Titans (EMT), an exchange-traded fund (ETF), is a good low-cost way to invest in a basket of two dozen miners from around the world.
“China gets top billing at 20% of the portfolio, followed by Russia, South Africa and Brazil. These countries are not only blessed with bountiful natural resources, they are also among the most ravenous consumers. Shareholders will have a stake in several of the world’s most powerful mining conglomerates, including Brazil’s Vale, India’s Sterlite, and Russia’s MMC Norilsk Nickel. The overall portfolio is light on oil and is primarily tilted toward coal, steel, gold and platinum, and industrial metals from aluminum to zinc. The fund posted a 20.1% return in its first full-year of operation in 2010, outpacing both the S&P 500 and its category average. EMT is an excellent way to capture rising global commodity prices and shield against a weakening dollar. The fund’s holdings are a safe distance from debt woes in the U.S. and Europe. And many pay dividends in Russian rubles, Brazilian reais and South African rands. These currencies (and others) gain value as the dollar depreciates. I consider Emerging Markets Metals/Mining Titans a strong candidate for my Top Growth Picks Portfolio.”
Nathan Slaughter, StreetAuthority Market Advisor, 8/24/11
