Industrial metals such as copper, aluminum, and steel are experiencing a surge in prices due to rebounding manufacturing activity and supply constraints. Investors looking to gain exposure to these commodities can turn to the iShares MSCI Global Metals & Mining Producers ETF (BATS:PICK). This $1.2 billion ETF from BlackRock’s iShares focuses on companies engaged in mining, extraction, or production of diversified metals, excluding gold and silver.
With manufacturing activity picking up globally, particularly in China, the demand for industrial metals is on the rise. The recent surge in copper prices, hitting a new two-year high, reflects this trend. Analysts predict a new bull market for copper, driven by the increasing demand for decarbonization-related products like electric vehicles and renewable energy.
PICK offers investors diversification within the metals and mining space, holding 257 stocks with top holdings like Freeport-McMoRan and Rio Tinto. Its attractive 4.2% dividend yield sets it apart from competitors like the SPDR S&P Metals & Mining ETF.
Analysts have a Moderate Buy consensus rating on PICK, with an average price target of $45.88, indicating a 7.5% upside potential. Overall, PICK provides investors with a way to capitalize on the surging prices of industrial metals, especially copper, in a market characterized by rebounding manufacturing activity and potential supply constraints.
