KEEP UP WITH COMMODITIES
BlackRock Gold and General (B5ZNJ89)
For an ongoing charge of 1.17% this long-standing fund invests your cash in a grouping made up principally of gold miners. Gold’s position as a traditional store of value means it can often deliver returns which uncorrelated to equity markets. The team behind the BlackRock fund hope to outperform the gold price through benefiting from the operational excellence of the individual miners it invests in.
It is worth noting that a commodities fund should only be considered once you have a solid backbone to a portfolio, such as through the aforementioned equity market and bond funds. Commodities are high risk and unpredictable, so you should consider putting less money in these types of funds. They provide ballast to a portfolio but shouldn’t be a large component of your overall investments.
Alternative: Guinness Global Energy (B3CCJC9)
Launched in 2008, this specialist energy fund has around half of its assets in the US, 15% in Canada and a little over 10% in the UK, providing genuinely global exposure to a recovering industry.