Five Miner ETFs with Yields of 5% and Up
September 30th 2012 at 6:00am by Tom Lydon
Dividend paying stocks have been a popular theme among investors, but you don’t need to look for dividend-focused funds to get your income fix. Along with their exposure to the rising costs of raw materials, equities-based commodity exchange traded funds offer attractive yields as well.
Stephen D. Simpson for Commodity HQ highlights five high-yielding, equities-based commodity ETFs for the income-minded investor:
The Market Vectors Rare Earth/Strategic Metals (NYSEArca: REMX) tracks companies that mine and produce rare earth metals used in electronic devices, along with strategic metals. Top country allocations include Australia 18.0%, U.S. 17.5% and China 12.9%. REMX has a 0.57% expense ratio and a 7.77% yield. [What is an ETF? — Part 24: Commodity Producers]
The Market Vectors Junior Gold Miners (NYSEArca: GDXJ) follows a basket of mid- and small-cap gold miners – mid-caps make up 21.6% of the fund and small-caps make up 78.4%. The fund has a heavier weight to Canada at 61.4% and a 25.2% weighting in Australian miners. GDXJ has a 0.54% expense ratio and a 5.55% yield.
The Global X Uranium (NYSEArca: URA) holds uranium miner stocks. This fund’s country allocations include Canada 54.6%, Australia 30.5% and U.S. 15.0%. URA has a 0.69% expense ratio. The ETF paid a $0.39 per share distribution in 2011, or a 4.9% yield today.
The Global X Copper Miners (NYSEArca: COPX) tracks global copper miners, with top country allocations in Canada at 38.1%, U.K. at 14.7% and the U.S. at 11.2%. Investors should know that the fund, with $31.3 million in assets, has an average trading volume of 43,549 and a bid/ask spread of 0.16%, according to Morningstar. COPX has a 0.65% expense ratio and a 4.82% yield.
The EG Shares Emerging Markets Metals/Mining (NYSEArca: EMT) invests in emerging market mining operations. Top country allocations include South Africa 22.9%, Brazil 18.0% and China 16.9%. This fund has $12.5 million assets under management, with an average 5,566 shares traded per day and a 1.21% bid/ask spread. EMT has a 0.85% expense ratio and a 4.67% yield.
For more information on dividend stocks, visit our dividend ETFs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.