iShares MSCI Global Select Metals & Mining Producers
One of the biggest bargains and subsequent winners could be the iShares MSCI Global Select Metals & Mining Producers (PICK). Since the major selloff that began in 2011, metals producers in the S&P 500 have lost more than half of their market value. This drop has been exacerbated by the recent plunges in copper and gold prices.
For example, world’s largest copper producer Freeport-McMoRan Copper & Gold (FCX) has seen its P/E plunge about 22% percent since the beginning of 2010 and now sits at 12.8.
Yet the long-term picture remains a lot more promising for the mining industry as the emerging world continues to industrialize. At the same time, growth in the U.S. is continuing to grind forward — all of which will support earnings and dividends from the metals miners.
Which is why the PICK could be a good choice. The ETF tracks 262 global mining and metals producers — with the U.K., Australian and the U.S. firms rounding out the top three holding countries. PICK charges a rock-bottom expense ratio of just 0.39%.