The BlackRock Resources & Commodities Strategy Trust offers high income and low volatility through a covered call-writing strategy, appealing to risk-averse investors. The fund's 6.50% yield outperforms similar sector index funds, making it attractive for income-seeking investors despite underperforming the S&P 500. The fund has added a gold producer to its largest positions, which is very nice considering that gold is positioned to deliver a strong performance for quite a while.
Diversifying away from the tech-heavy S&P 500 can be achieved through energy and materials, but BCX's high fees and underperformance make it a poor choice. BCX's covered call strategy often leads to underperformance, failing to provide significant downside protection and capping upside potential. XLE and GLD are recommended for passive exposure to natural resources, offering better performance without management risk or high fees.
With stocks back in “climb” mode (at least for now!), it could seem like a good time to look for a hedge against the next downturn.
Blackrock Resources & Commodities Trust aims for high current income and capital appreciation, offering a 6.7% yield. The Trust's top holdings are concentrated in O&G companies and miners, with significant exposure outside the U.S. However, the BCX Trust has a very poor 10-year performance rack record as compared to competitors and the broad market averages.
Buying at big discounts allows you to get more value for less cost. We can collect great income now and enjoy when the discount closes. Bombard your expenses with a torrential rain of income.
The value of the dollar has halved in the past 30 years. 2020 gave us the start of a rapid inflationary period; its impacts are still reverberating in the average person's wallet. We look at how to solve the problem with high-quality income.