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ETF Chart of the Day: Metals and Mining


With recent attention in ETFs leaning towards Emerging Markets based funds given “breakout” price action and massive asset inflows in past weeks in the likes of NYSEArca: EEM (iShares MSCI Emerging Markets, Expense Ratio 0.67%), it seems appropriate to highlight a newer fund that debuted in late January of last year, NYSEArca: PICK (iShares MSCI Global Select Metals and Mining Producers).

With China based equities finally springing to life after a period of prolonged under-performance and noting that China is the largest single country component of the broad based MSCI Emerging Markets Index (19.01% weighting currently), PICK is well positioned to benefit from any demand for metals used in the construction/infrastructure build out process that is often linked to China and other emerging economies. [Emerging Market ETFs Hit 17-Month High]

Top holdings in PICK are currently stocks that are likely familiar to most, including BHP Billiton, Rio Tinto, Anglo American PLC, Freeport McMoran, and Vale to name a few, although the fund itself owns 308 individual equities.

Trading about 40,000 shares on an average daily basis, the fund currently has more than $250 million in assets under management which is quite a statement in a little under a year of live history for a “niche” fund such as PICK.

Outside of this daily volume number, ample liquidity is available in this fund for those whom are looking to establish size positions. Head to head since inception against the more established NYSEArca: XME (SPDR S&P Metals and Mining), PICK has demonstrated notable out-performance, down 10.33% versus XME down 16.44% during the same time frame.

Both funds have attracted new assets in the trailing one year period, with XME pulling in north of $370 million during the same time frame that PICK has been in existence and has accumulated its own assets via creation activity.

iShares MSCI Global Select Metals and Mining Producers


For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.