Building a strong portfolio

The benefit of using an ISA is that an investment portfolio can grow faster. Any dividends received aren’t subject to dividend tax, meaning the full amount can be enjoyed or reinvested. Further, when selling a growth stock for a profit, there’s no capital gains tax.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Of course, these advantages apply only if the portfolio is well-positioned. Therefore, the following key point is how to build a robust ISA. To do this, an investor needs to diversify their risk. This can be done in multiple ways.

Risk needs to be spread across sectors, so that means owning companies from consumer staples through to tech. It also relates to geography, owning companies with exposure not just to the UK but around the world. Finally, not just putting all the money in a handful of names, but rather a broader portfolio, can act to reduce the concentration risk associated with one or two stocks.

Show me the money

Now let’s talk about numbers. Putting away £500 a month isn’t going to work for everyone, but let’s assume this is the figure. I’m also going to assume an annual growth rate of 6% for the portfolio, which I believe is reasonable over the long term. By the end of year eight, the portfolio could be worth £62.2k.

This is just a projection based on my assumptions. A higher or lower growth rate might be achieved in practice, which could give the investor a larger or smaller pot size.

Looking for nuggets

One stock I believe fits the bill is Blackrock World Mining Trust (LSE:BRWM), up 73% over the past year. Over a broader five-year time horizon, the stock’s up 58%, exceeding the annual 6% target gain.

The investment trust buys mining and metals companies and is actively managed by BlackRock’s natural resources team. Among the current top 10 holdings are Glencore, Anglo American, and Rio Tinto.

Given the commodity rally in 2025, the trust did very well. I think the move in precious metals will continue for the coming years. Base metals like copper and nickel are becoming increasingly valuable for industrialisation globally, as well as for the transition to cleaner energy products (like EVs).

The exposure to gold is also significant. I think we’re in for another rocky year as far as geopolitics and macroeconomic uncertainty go. So owning stocks that directly benefit from rising gold prices (which people buy as a safe haven) should serve the trust well.

In terms of risks, commodity stocks are known to be volatile. The movement in the trust price in the past has also been volatile. Therefore, investors need to be aware that they could experience large swings before committing.

Yet despite this concern, I think it’s a good stock that could be considered for an ISA as part of a long-term growth strategy.

The post If an investor put £500 a month in a Stocks and Shares ISA, here’s what they could have in 8 years appeared first on The Motley Fool UK.

However, I wasn’t that impressed with the ones it gave me, so I picked my own three UK stocks to go head-to-head with the AI bot.

After nearly one year, who is winning so far — AI silicon brain or this fallible human Fool? Let’s find out.

ChatGPT’s picks

The shares ChatGPT named in early January were F&C Investment Trust, Unilever, and The Renewables Infrastructure Group (TRIG).

The first is a FTSE 100 investment trust boasting over 50 years of consecutive annual dividend growth. Unilever is the consumer goods giant behind brands like Dove, Persil, Lynx, and Hellmann’s.

Meanwhile, TRIG from the FTSE 250 owns a large, diversified portfolio of wind farms, solar parks, and battery storage projects across the UK and Europe.

Here’s how they have performed since 6 January:

• F&C Investment Trust +10.1%
• Unilever +1.8%
• TRIG -22%

I calculate that an equal amount invested in each of these shares would have generated a total return of just 1.2%. And that’s including TRIG’s giant 8.4% yield from a year ago.

Considering the FTSE 100 has jumped around 20%, with dividends on top, that’s disappointing. It shows me that I shouldn’t rely solely on ChatGPT for my stock picks.

But how has my trio got on?

My picks

The stocks I went for were AstraZeneca, Scottish Mortgage Investment Trust, and BlackRock World Mining Trust (LSE:BRWM).

The first is a world leader in oncology, while Scottish Mortgage is the FTSE 100 trust focused on disruptive growth stocks. BlackRock World Mining is self-explanatory.

Here’s how these shares have performed since early January:

• AstraZeneca +26.9%
• BlackRock World Mining Trust +70.2%
• Scottish Mortgage +18.8%

As we can see, these returns are far better than ChatGPT’s above. Adding in the dividends, I calculate a total return of 40.1%.

Gold and copper

The standout performer here has been the FTSE 250 mining trust. This has been driven by two themes it had backed in its portfolio: gold and copper.

The yellow metal has rocketed nearly 70% in the past year, surpassing $4,000 per ounce for the first time. Meanwhile, copper has jumped 35% in the same period, as electrification uses now drive nearly half of global copper demand.

Meanwhile, a single ChatGPT query uses roughly 10 times the electricity of a Google search. As such, the trust’s overweight position in copper is paying off as supply deficits have begun to emerge.

Time to go

Of course, there’s still another four years to go with these picks, and a lot can happen in this time. AstraZeneca’s pipeline could disappoint, as could Scottish Mortgage’s bets on the next generation of winners.

Meanwhile, BlackRock World Mining will sell off periodically whenever fears about China’s economy rise. I’m not expecting another 70% yearly surge anytime soon. It’s trading at an all-time high, and I think investors should wait for a pullback before considering it.

Moreover, ChatGPT has had a couple of updates in the past 12 months (it’s now more powerful). So I wouldn’t expect the gap to be so wide next time.

We’ll find out the stocks it likes in January when I do another one of these head-to-heads…

The post Did ChatGPT give me the best FTSE stocks to buy 1 year ago? appeared first on The Motley Fool UK.

However, shares of BlackRock World Mining Trust (LSE:BRWM) have jumped roughly 40% without dividends, leaving the index in the dust. 

Here’s why I think this FTSE 250 stock is still worth considering for long-term investors. 

Big trend beneficiary

BlackRock World Mining is an investment trust focused on global mining shares. It also invests in royalties from metal and mineral production, as well as having the ability to hold up to 10% in physical metals and 20% in unlisted assets.

Looking at the top of the portfolio, it’s not hard to see what has been driving outperformance recently. There’s Agnico Eagle Mines (a large Canadian gold producer), Kinross Gold, and Newmont Corp (the world’s largest gold mining company).

In the past year, the gold price is up 41%. So these gold miners have been printing money lately.

Elsewhere, Wheaton Precious Metals is heavily exposed to silver as well as gold prices. Silver has also surged 41% in the last 12 months.

This precious metals exposure is not by accident. The managers had 21% of the portfolio in gold miners at the end of 2024, positioning the portfolio to benefit from any surge in gold stocks, which has duly happened.

Needless to say, skyrocketing profits at these miners bodes well for dividends too. The trust’s yield today is still a handy 3.4%, despite the share price increase.

Another big bet

The mining sector is benefiting from the world’s most compelling long-term trends, from digital transformation to gold and precious metals.

BlackRock World Mining. 

Beyond gold, the trust is also backing copper as a core theme. As it points out: “the technology and infrastructure crucial to the energy transition is reliant on a core set of metals that includes copper”.

The red metal is essential for electrical wiring, EV motors, grids, and so on. As such, it made up more than a third of the portfolio at the end of 2024, with chunky stakes in major copper producers like Freeport-McMoRan, BHP, Rio Tinto, and Glencore.

Attractive long-term trends

Mining, of course, is a notoriously cyclical sector. Share prices can swing wildly, and developments in China (the world’s biggest consumer of metals) often play a massive part one way or the other. 

Picking the right mining shares at the right time can be challenging. That’s why I hold BlackRock World Mining Trust in my own portfolio. It offers me professional management, steady dividends, and appealing long-term themes (such as the global energy transition). 

Looking ahead to the next few years, I don’t think gold bull run is over. Central banks are buying more bullion to cut reliance on the US dollar. Geopolitical tensions are high, as is inflation and government debt. All should support steady demand for the yellow metal, even though another 41% rise in a single year is unlikely. 

More broadly, spent mines are not being replaced quickly enough worldwide. This dynamic should create a supply-demand imbalance as long-term demand for copper and other metals rises. 

Right now, investors can pick up shares at an 8.2% discount to net asset value, which I think is an attractive option to consider.

The post This FTSE 250 stock is smashing the market in 2025! appeared first on The Motley Fool UK.

The AI revolution

ChatGPT was released in late 2022. And what started with chatbots writing essays has quickly spread into customer service, creative fields, and even law and medicine. Tasks that once seemed safe — paralegal work, creating adverts, even analysing X-rays — are now vulnerable to automation.

For businesses, the promise of AI is huge. It can lower costs, boost productivity, and fatten profit margins. That’s why corporate adoption of the technology is happening at such a blistering pace. 

Worryingly though, there’s a possible downside. In the UK, youth unemployment is rising, with some saying AI is a factor (fewer entry-level jobs). 

The next tech wave brewing is AI agents. These are intelligent software programmes that can take action on their own to achieve a particular task, thereby automating more back-office roles/jobs.

Yuval Noah Harari, who is a prominent writer on the subject, says the AI revolution can be thought about as “a wave of billions of AI immigrants. They don’t need visas. They don’t arrive on boats. They come at the speed of light. They’ll take jobs”.

Breathing space

As alarming as this sounds, AI won’t replace all jobs. I don’t envisage a Tesla Bot marching into my house to fix my gas boiler anytime soon. And this technology will undoubtedly create new jobs that don’t currently exist.

But if AI makes certain skills redundant or drives down wages, workers may find themselves scrambling to adapt. And in such an environment, that’s where passive income from dividends would come in very handy. 

This income could help cover living expenses if a primary job is lost, allowing individuals to retrain for new roles. This would provide valuable breathing space.  

Moreover, if AI makes companies more efficient, shareholders will likely reap the benefits. This would be in the shape of potentially higher dividends and share prices. 

The robots may do much of the work in future, but dividends will always flow to human shareholders.

FTSE 250 stock

As for stocks, I don’t think miners are threatened by AI. But it can be tricky to pick the right one, so I prefer BlackRock World Mining Trust (LSE: BRWM).

This FTSE 250 investment trust holds dozens of top global players, offering exposure to copper, steel, gold, silver, and more. Top holdings include Rio Tinto and BHP.

One thing worth noting, however, is that miners are tied to the fate of the global economy. If it enters a downturn, mining stocks would follow, negatively impacting the trust’s valuation.

However, many mined metals should soar in value in future as the global energy transition gathers pace. That’s because demand is tipped to far outstrip supply, which should support higher prices.

While not guaranteed, this should filter through to higher dividends over time. Right now, the trust offers a starting 4.1% dividend yield.

Foolish takeaway

Passive income could provide a vital financial safety net in a changing economy. I don’t see miners being disrupted, making BlackRock World Mining one to think about for dividends. 

The post Here’s why artificial intelligence (AI) could make passive income more important appeared first on The Motley Fool UK.

Here are three from the mid-cap index that I think are worth digging into.

USA

The first is Allianz Technology Trust (LSE: ATT), which “offers investors access to the fast moving world of technology, the single greatest contributor to global growth.”

The top holdings are unlikely to shock anyone, comprising the likes of Microsoft, Apple, Amazon, and chipmaker Nvidia. While these all have commanding competitive positions, they also relentlessly invest for future growth. So there’s nothing stopping them from becoming even larger.

One thing I like here is the management team’s close proximity to Silicon Valley, where many of the world’s key technology companies — both today’s and likely future — are based. As a result, we see less-well-known tech stocks like Cloudflare and AppLovin in the portfolio.

Naturally, this concentration in predominantly US tech stocks adds risk. The trust would perform badly were this sector to sell off, as happened in 2022. The Allianz Technology share price crashed around 40% in just six months back then.

Since those lows though, the stock has doubled.

Core investment themes include artificial intelligence (AI), cloud computing, and cybersecurity. All three are likely to become more important over the next decade.

The trust is currently trading at a 9% discount to net asset value (NAV).

Global mining

Next up is BlackRock World Mining Trust (LSE: BRWM). This holds mining stocks involved in producing copper, steel, gold, silver, and much else.

The five largest holdings today are Vale, Agnico Eagle Mines, BHP, Rio Tinto, and Wheaton Precious Metals.

Recent performance has been strong, with the shares up nearly 20% year to date. However, it’s worth bearing in mind that volatility might be on the horizon, as tariffs work their way through the system.

After all, mining stocks are usually the first to sell off aggressively if there’s any whiff of the global economy slowing down.

Investors buying today are being offered a 4% dividend yield to sit out any volatility. Longer term, the key growth theme in the portfolio is the global energy transition, which will need copious amounts of copper, steel and nickel.

Asia Pacific

Finally, something a little bit different with Pacific Horizon Investment Trust (LSE: PHI). This one invests in growth stocks across Asia (excluding Japan).

At the end of June, the top five holdings were Taiwan Semiconductor (TSMC), Tencent, Samsung Electronics, SK Square, and TikTok owner ByteDance. The largest geographical allocations were China (30%), Taiwan (15.6%), and India (14.6%).

Again, tariffs are a risk here. We don’t yet know the damage these have done to manufacturing hubs in Asia, particularly Vietnam.

Despite this, Asia is widely tipped to drive a large chunk of global economic growth over the next 20 years. Indeed, it’s projected that two out of every three people in the global middle class will be Asian by 2030.

The share price remains 32% below its November 2021 peak, while the NAV discount is 10.5%. This suggests to me that now might be a great time to consider investing.

The post 3 top FTSE 250 investment trusts to consider buying today  appeared first on The Motley Fool UK.

Here are three of them that I feel are worth considering.

Betting on gold and copper

The BlackRock World Mining Trust (LSE: BRWM) does exactly what it says on the tin (pun intended). It’s an investment trust run by BlackRock that invests in global mining stocks.

There are a few things I find really attractive about this one. Firstly, the managers have a lot of freedom. They can obviously invest wherever the mining opportunity is, whether that’s lithium in Chile, copper in the Congo, or gold here and uranium there. But they can also invest in miners not listed on the stock market, as well as corporate bonds. 

Today, the trust has a massive 31% weighting towards gold, the price of which is rising due to unstable geopolitics, ballooning sovereign debt, and stubbornly high inflation. 

I’m bullish on the price of the yellow metal long term, so this gives my portfolio exposure to it. Top gold miners it holds include Agnico Eagle Mines, Kinross Gold, and Newmont. 

BlackRock World Mining also has a large weighing to copper (nearly 24%). The energy transition (EVs use up to four times more copper than petrol cars) and the rise of data centres needed for AI should continue creating huge demand for copper. The trust holds Rio Tinto and BHP, which are both big copper players. 

There are risks, of course. Any severe global downturn would hammer commodity prices, putting pressure on the trust itself. Indeed, copper is often nicknamed ‘Dr Copper’, because its price tends to reflect the health of the global economy. Therefore, a sudden drop-off in demand in China is a risk.  

Over a 20-year timeframe though, I’m bullish on the prices of key commodities. They’re likely to trend much higher due to supply and demand imbalances.

The dividend yield is currently 4.3%. While nothing is guaranteed, I expect to be receiving regular passive income from BlackRock World Mining for the next two decades.

Population trends

The other two stocks are Legal & General and HSBC. According to the Office for National Statistics, the number of people aged 65 and over in the UK is expected to exceed 22m over the next few decades, up from 12.7m in 2022. 

In other words, the UK population is ageing rapidly. This should be a supportive trend for pensions giant Legal & General, despite its exposure to a sluggish UK economy, which is admittedly a risk to the firm’s growth.

Legal & General has a long track record of reliable dividends, and the yield is currently a juicy 8.5%.

Meanwhile, HSBC is selling off Western assets to double down on opportunities in Asia. This does present an element of risk because most of these markets are less mature and can be volatile. Again, an economic slump in China is a risk for HSBC.

However, according to asset manager Schroders, the middle-class population in Asia Pacific is expected to surge to 3.49bn people by 2030, up from 1.38bn in 2015. This means millions more people will need banking, loans, and wealth management services — exactly what HSBC specialises in. 

The post 3 passive income stocks I aim to hold for 20 years appeared first on The Motley Fool UK.

Handy Murray

As its name implies, the Murray Income Trust (LSE:MUT) is a true hero for investors seeking a large and growing passive income. And today it can be picked up at very low cost.

At 854p per share, it trades at a 9.6% discount to its net asset value (NAV) per share:

Dividends at Murray Income have grown for 51 consecutive years. But unlike some of the UK’s dividend growth trusts, the yields here are far from disappointing. For this year it sits at 4.8%, far ahead of the FTSE 100‘s 3.4% average.

It’s able to do this thanks to a focus on a range of income-paying UK blue chip shares. Prominent holdings include Unilever, RELX, AstraZeneca and National Grid.

This cross-sector exposure provides added strength, though remember that its focus on British stocks creates regional risk. Murray Income’s delivered an average annual return of 4.9% since 2015.

Take it to the bank

At 116.4p per share, the Bankers Investment Trust (LSE:BNKR) trades at a 9.5% discount to its estimated NAV per share. For investors seeking to effectively diversify their holdings, I think it’s worth serious consideration.

In total, this investment trust has holdings in 101 different companies spanning the globe. As you can see below, it’s pretty well diversified by sector and geography, although a large weighting of US tech stocks provides it with enormous growth potential as the digital economy booms:

According to its website, Bankers Investment Trust is set up “to achieve capital growth in excess of the FTSE World Index and dividend growth greater than… the UK Consumer Prices Index.” It’s done a pretty good job of this, with dividends rising for 58 years on the spin.

Total annual returns here have averaged 7.9% since 2015. While an economic slowdown could impact its tech holdings, I think it’s still a great trust to consider, and especially at today’s prices.

Rock solid

Investing in the BlackRock World Mining Trust (LSE:BRWM) carries more risk today. As the name implies, 100% of its holdings operate in the cyclical world of commodities production.

Not only this, but the industry it’s focused on is prone to significant unpredictability. Disappointments can be common at the exploration, mine construction and production phases, meaning sales and cost projections can fluctuate wildly.

But with holdings in more than 60 different mining companies — including diversified heayweights Rio Tinto, BHP and Glencore — it effectively spreads this risk out. Its wide wingspan also provides protection from localised issues in specific commodity markets and countries (almost 60% of its holdings operate across the world):

At 517p per share, the BlackRock World Mining Trust trades at a 6.5% discount to its NAV per share. Delivering an average annual return of 9.8% since 2015, I think it’s worth a serious look today.

The post 3 dirt cheap FTSE 250 investment trusts to consider this week! appeared first on The Motley Fool UK.

aberdeen

What it does: aberdeen is an investment company whose clients range from Sovereign wealth funds through to individuals.

By Andrew Mackie. The recent sell-off in aberdeen (LSE: ABDN) pushed the dividend yield on the stock up to an astonishing 11.6%. With it on my watchlist, I simply could not let an opportunity like that go begging. Despite the share price trading at an all-time low when I bought, there were a number of encouraging signs during its FY24 results. Not least that it finally swung back to a profit.

The woes that have beset the company for years are well documented. Investors just couldn’t stop pulling cash out of its under-performing funds and moving into passive strategies, predominantly tracking the Magnificent 7.

Regardless of where tariffs go from here, the world order will continue to be upended. US equities, which have long dominated global capital flows, are likely to go into reverse in the future, not least because of the hefty multiples attached to them. We have already seen investors piling into European stocks. All this bodes well for an active asset manager like aberdeen.

Of course, there are plenty of risks here. One notable one is that if inflation continues to remain sticky interest rates may not come down much, resulting in individuals deciding to park their capital in a savings account rather than in its funds.

Andrew Mackie owns shares in aberdeen.

BlackRock World Mining Trust

What it does: BlackRock World Mining Trust invests in mining and metal assets worldwide.

By Ben McPoland. A FTSE 250 stock that I bought during the early April sell-off was BlackRock World Mining Trust (LSE: BRWM). The share price dropped around 20% inside three weeks!

To be sure, the potential for a global recession poses obvious risks to metals demand and pricing. A lot of uncertainty remains, which may weigh on the mining sector for some time. 

However, I remain bullish on the long-term global electrification theme. According to the International Energy Agency, clean technology demand for copper will make up nearly 40% of overall demand by 2030.

However, new copper mines aren’t coming online quickly enough to meet this growing need. Therefore, thetrust anticipates supply deficits, which should drive copper prices – and producers’ earnings – higher.

As such, copper has a significant overweight position in the portfolio. But the trust also has exposure to the soaring gold price through stocks like Agnico Eagle Mines, Barrick Gold, and Wheaton Precious Metals. As I type, Agnico and Wheaton are up 91% and 49%, respectively, over the past 12 months.

Finally, there is a near-5% dividend yield and 9% discount to net asset value. I think the trust provides solid all-round value.

Ben McPoland owns shares of BlackRock World Mining Trust.

Games Workshop

What it does: Games Workshop sets the industry standard in the fantasy wargaming hobby through its Warhammer universes.

By Royston Wild. I’ve used recent market volatility to top up my holdings in tabletop gaming giant Games Workshop (LSE:GAW). The FTSE 100 share is now the fifth-largest holding in my portfolio.

The company — like swathes of shares across the world — has dropped in value due to worries over the impact of ‘Trump Tariffs’ and reciprocal action from the US’ trading partners.

Import taxes could serve as a double-whammy to Games Workshop’s profits. North America represents around 40% of group revenues and is the firm’s single largest market. Fresh tariffs in this critical territory could therefore be significant.

Furthermore, broader sales for the Warhammer maker could suffer if trade wars cause a global downturn.

That said, I buy shares based on their long-term potential. And my enthusiasm for Games Workshop remains undimmed as the fantasy gaming market booms.

With its market-leading products, the Footsie firm’s in the box seat to capitalise on this opportunity. And fresh licencing deals (like the TV and film deal it recently inked with Amazon) could pump up sales away from its traditional operations.

Royston Wild owns shares in Games Workshop.

Jet2 

What it does: Jet2 is the UK’s no.1 tour operator and third largest airline with plans to grow further over the decade.

By Dr James Fox. I believe that Jet2 (LSE:JET2) is typically overlooked by investors. The company has a huge net cash position of £2.3bn, but its market cap is just £2.8bn. In other words, it’s trading at just 1.2 times expected net income for the year ahead when the net cash position is taken into account. That makes it one of the cheapest stocks I’ve come across, especially in this sector. 

Of course, there are risks. Jet2’s margins are a little thinner than the likes of IAG and this means it’s more susceptible to cost challenges. In fact, the autumn budget is expected to add an additional £25m to costs. That’s something it will need to pass on to customers or absorb. Neither is ideal. 

On a positive note, jet fuel prices have really pulled back since Trump’s tariff announcement. Fuel typically accounts for 25%-40% of operating costs, so a 9.1% weekly fall should have a positive impact.

James Fox owns shares in Jet2 plc.

Unilever

What it does: Unilever is a British multinational and one of the world’s largest producers of fast-moving consumer goods.

By Mark Hartley. I recently shifted more capital into Unilever (LSE: ULVR) shares as a defensive move against market turbulence. I find it to be one of the most stable and resilient businesses in the UK, so it’s an ideal safe-haven when things get volatile. The company operates across more than 190 countries, offering a diverse portfolio of over 400 brands, including Dove, Knorr, Hellmann’s and Magnum. Its product range includes food and beverages, cleaning agents, beauty and personal care products, as well as health and wellness items.

However, its return on invested capital (ROIC) has declined from 28.9% in 2018 to 16% in 2023. This is most likely due to stiff competition from rivals like Procter & Gamble, which recently streamlined operations to gain market share. Despite this risk, it reported revenues of €60.8bn in 2024, with 58% of sales generated from emerging markets. It remains a solid favourite of mine.

Mark Hartley owns shares in Unilever.

The post 5 British stocks Fools have been buying! appeared first on The Motley Fool UK.

At the beginning of the month, my ISA became a sea of red, with some shares falling 20%+ in the space of a couple of days. Then tariffs were paused on 9 April and the market shot back up, with the S&P 500 recording one of its best days since the Second World War.

Buying the fear

Superstar investor Warren Buffett has been investing for eight decades. He famously said: “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

Unfortunately, investing when the market’s tanking can be hard to do. In times like these, it often feels safer to sit out the storm.

However, history shows that investing during periods of fear — when investors are dumping stocks haphazardly — does indeed often lead to stellar results. That’s because the stock market has a flawless track record of recovering from every setback.

Take the onset of the pandemic in the first quarter of 2020, which was certainly a time of incredible uncertainty. If someone had invested in the S&P 500 as soon as it crashed 20% in March 2020, they’d have more than doubled their money by now.

The last proper crash before Covid was the 2008 Financial Crisis. So these opportunities tend to come around about once every decade or so, and are well worth seizing.

Taking action

Putting Buffett’s words into action, I did a bit of shopping for my ISA in early April. I bought two stocks, an investment trust, and an ETF.

Here’s how they’ve done since then:

• Nvidia at $95 (+11.5%)
• Shopify at $74 (+28%)
• BlackRock World Mining Trust (LSE: BRWM) at 395p (+21.5%)
• iShares NASDAQ 100 ETF (+8%)

2025 could present further opportunities

Needless to say, I’m happy with how these stocks have performed, so far. The thing is though, I’m expecting further volatility for the rest of 2025. The US-China trade war is likely to be very bad for economic growth. Many companies have hit the pause button on investment and hiring, opting to wait for greater clarity around global trade.

As such, there’s a real possibility that the US/global economy enters a slump later this year. If so, then there could be once-in-a-decade opportunities coming up for investors with cash sitting in an ISA.

Another 100%+ return

Zooming in on BlackRock World Mining, this FTSE 250 trust — which invests in mining assets worldwide — is an interesting play. It tends to bomb along with metal prices when the economic outlook worsens (as mentioned, a key risk here).

Conversely, it often bounces back strongly when sentiment improves (as it has in recent days). Looking back, £5,000 invested in the shares in March 2020 would now be worth £10,000. Add in the dividends received along the way, the total return would be around £13,000.

I think this trust could be worth considering if things head south. Many of the metals it’s invested in — especially gold and copper — are likely to become more valuable over the long run.

The post The stock market in 2025 could be a once-in-a-decade opportunity to build wealth in an ISA appeared first on The Motley Fool UK.

Value and dividends

First up is BlackRock World Mining Trust (LSE: BRWM), which pretty much does what it says on the tin (pun intended).

Mind you, tin doesn’t make up too much of the global mining trust’s portfolio. Today, it has a large weighting to copper, iron ore and steel, which should all experience steady long-term demand due to global trends like decarbonisation, electrification, and infrastructure modernisation.

The FTSE 250 trust also has a 27% allocation to gold, the price of which has surged to record highs amid rising geopolitical tensions and a weakening US dollar. So there is good diversification, especially through top multinational holdings like BHP, Rio Tinto, and Glencore.

The risk here is that mining is cyclical and commodity markets can be volatile. The trust’s value can fall quickly if the global economy tanks.

Despite this, I think now is a good time to consider picking up some shares. Down 22% in two years, they’re offering a 4.6% dividend yield and are trading at a near-10% discount to net asset value (NAV).

Longer term, we expect mined commodity demand growth to be driven by increased global infrastructure build out, particularly related to the low carbon transition and increased power demand.

BlackRock World Mining Trust.

High growth

Next up is Baillie Gifford US Growth Trust (LSE: USA). Again, no prizes for guessing what this one focuses on.

The reason I like this one is because it offers investors exposure to some very exciting growth companies not listed on the stock market. Chief among these are internet payments giant Stripe (recently valued at $91.5bn) and rocket pioneer SpaceX (the world’s most valuable private firm at $350bn).

Many other holdings dominate their respective industries, including Amazon (e-commerce and cloud computing), Meta Platforms (Facebook, Instagram, and WhatsApp), Duolingo (language learning), Netflix (streaming), and Nvidia (AI chips).

Recent performance has been impressive. In the six months to 30 November, the trust’s NAV and share price returns were 29.4% and 40.9%, respectively. This significantly outperformed the S&P 500‘s 15.3% return (in sterling terms). 

One risk to be aware of here is that the portfolio has significant AI exposure. If AI spending slows, the technology doesn’t fulfil its exciting potential fast enough, or individual companies struggle, the trust’s value could suffer.

Longer term though, I expect it to do very well as the world becomes more digital and AI likely permeates every sector. It also has holdings in potentially revolutionary smaller companies like PsiQuantum (quantum computing) and Runway AI, a generative AI video platform for creative artists.

Some of these smaller growth companies could drive fantastic returns. As the trust points out, only 10 years ago, Tesla and Nvidia were mid-cap companies with market caps in the $10bn-$30bn range. Look at them now! 

Finally, the discount to NAV here is 12%, which means the shares might prove to be a bargain at 237p. I think they’re well worth considering for long-term growth investors with a stomach for volatility.

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