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Time to bet the farm on resources?

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Time to bet the farm on resources?

Hi guys, thanks again for all the work which goes into running Market Matters. Can you highlight a leveraged ETF which will be worth looking at. I'm just about ready to go all in on resources, anticipating that we are close to a low and a weak season approaching. Alternatively, can you convince me that there is a better option for the next six months to hopefully maximise profit. Regards, Simon

Answer

Hi Simon,

The BetaShares Resources ETF (QRE) and VaneEck Australian Resources ETF (MVR) are of very similar size, liquidity and costs. However the QRE is far more BHP dominated whereas the largest holding in the MVR ETF is Woodside, take your pick depending on your view within the sector, the top 4 holdings in each:

  • QRE: BHP 41%, WDS 10.2%, RIO 8.4%, and FMG 6.7% – traditional miner focused.
  • MVR: WDS 8.3%, BHP 8.1%, FMG 6.8% and Santos (STO) 6.7% – more energy focused.

We’re not across these sorts of sector ETFs that use leverage, we could be wrong but have not come across any.

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VanEck Australian Resources ETF (MVR)
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