Global Miner ETFs: Falling Commodities Prices Weigh on Dividend Policies | Page 2 of 2 | ETF Trends

The two ETFs provide attractive yields, but income investors may see dividends drop if companies decide to tighten their belts. PICK has a 2.94% 12-month yield and MXI shows a 2.2% 12-month yield.

Furthermore, the global mining industry’s outlook looks weaker after many have cut back on expanding operations. Among the top 40 miners, capital expenditure has declined 20% in 2014. The majors’ exploration budget decreased to $4.9 in 2014, or less than half the amount two years prior.

“Reductions in capital raised and spent on exploration call into question the ability of miners to find additional low-cost reserves to remain competitive, as well as their ability to respond to eventual increases in commodity demand. The industry’s inertia will come at a price,” according to PwC.

For more information on miners sector, visit our metals & mining category.

Max Chen contributed to this article.