That iShares MSCI Global Select Metals & Mining Producers ETF SELECT is down about 16.53% year-to-date. Despite being down, it was significantly better than the S&P 500, which is down nearly 21% year-to-date.
This ETF provides exposure to the global mining industry through an international basket of companies engaged in extraction and production of metals.
Meanwhile, the international mining ETF is the rival SPDR S&P Metals & Mining ETF XME invested in US mining companies and is up around 5.7% year-to-date. This domestic mining ETF’s top 15 holdings include copper-heavy miners Freeport McMoRan Inc FCXwhich suffered from falling copper prices in its earnings in the third quarter.
One factor to consider when investing in mining companies is that their dividend increases can be inconsistent over the years, as is the case with commodity prices volatileespecially when there is high demand.
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Rio Tinto Group plc RIO offers a dividend yield of 9.86%, or $5.34 per share annually using semi-annual payments, with an unpredictable track record of growing its dividends.
Rio Tinto is a globally diversified mining company and its dominant commodity is iron ore, with significantly smaller contributions from copper, aluminum, diamonds, gold and industrial minerals.
“Market conditions have been good, albeit below last year’s record levels. We delivered largely flat production and solid financial results with underlying EBITDA of $15.6 billion. As a result, we are paying our second-highest interim dividend ever of $4.3 billion, a 50% payout in line with our policy. “The market environment has become more challenging towards the end of the reporting period,” said the Rio Tinto CEO Jacob Stausholm.
Val SA VALLEY offers an 8.30% dividend yield, or $1.12 per share annually, makes semi-annual payments, and has a mixed track record of growing its dividends.
Vale is a major global miner and the world’s largest…
