Golden gains

Gold’s prolonged bull run is showing no signs of slowing. The yellow metal has struck fresh all-time highs near $3,650 per ounce in recent hours. Analysts are tipping further gains as economic worries (like returning inflation and growth-hitting tariffs) spook investors.

Goldman Sachs — which recently said gold prices could touch $5,000 per ounce in the next year — has said in recent days that buying gold stocks could be an effective way to capitalise on bullion prices.

It’s a strategy that exposes investors to the unpredictabilities and dangers of metals mining. Disappointments at the exploration, mine development and production phases can be common. In these situations, their profits can underwhelm even if gold prices continue rising.

The iShares Gold Producers ETF (LSE:SPGP), which — at the latest count — had holdings in 68 different miners can reduce stock-specific risk but it can’t eliminate it.

Having a stake in metal producers over physical gold and gold-price-tracking funds has significant advantages. Profits at miners can grow at a faster rate than the gold price, as revenues rise in line with gold prices while costs stay largely fixed. This can lead to far greater capital gains.

Gold producers can also provide a dividend, while physical metal and price tracking funds don’t. The dividends the iShares Gold Producers ETF receives are automatically reinvested into the fund, providing an added boost to growth.

With a focus on large-cap miners including Agnico Eagle, Barrick Gold and Wheaton Precious Metals, this iShares instrument provides great stability while still harnessing gold’s long-term investment potential.

A new ETF

Defence is another sector that’s tipped for strong and sustained expansion. This makes funds such as the WisdomTree Europe Defence (LSE:WDEP) — which has risen 14% in value since its March launch — also worth consideration in my view.

As its name suggests, it focuses on European companies. This may have a major advantage as continental defence spending is tipped to rise especially strongly over the long term. This geographical focus also reduces the threat of lower US military spending, which is more of a natural threat to North American contractors. That risk is still an issue for it though.

In 2024, European arms spending rose 17% to $693m, according to the Stockholm International Peace Research Institute. Canadian demand meanwhile increased 7% year on year, to $29m. It’s a trend industry boffins expect to continue, with GlobalData predicting combined expenditure from Europe and Canada to hit $1.3bn by 2035.

The WisdomTree Europe Defence fund provided significant exposure to large and diversified arms suppliers like BAE Systems and Rheinmetall. Indeed, more than 91% of the fund is tied up in businesses with market caps of £10bn and above. It therefore benefits from scale and stability, and may be able to better weather problems like competition and supply chain challenges.

In total, it has holdings in 24 different defence shares, which I’m optimistic will deliver excellent long-term returns.

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Investors today have various ways to try and capitalise on the precious metals boom. They can go down the old route of buying physical gold like bars and coins. Individuals can also choose to buy an exchange-traded fund (ETF) that tracks movements in the yellow metal.

A better way to capitalise on the bull run, however, might be to buy gold mining stocks instead. A fresh report from Edison analysts explains why this could be the best path to consider.

Will gold miners shine?

According to executive director Neil Shah, “We believe gold mining equities are entering their most rewarding phase, with the foundation of strong gold prices now established“.

Looking at gold’s performance since 2019, Shah says that — following a rise in metal prices at the start of previous bull markets — the prices of large-cap miners tends to pick up around nine months later.

After this point, the performance of mid-tier producers accelerates “as major producer outperformance wanes“. This is followed by “the final and often most explosive phase of outperformance [from] from the juniors“, the analyst notes.

Beyond being in this ‘sweet spot,’ Shah suggests now may also be an ideal time to buy gold stocks as sector consolidation accelerates. He notes Gold Fields’ bid last month for Gold Road Resources, which was made at a 28% premium to the Australian company’s then-closing price.

Shah says that, “With major producers facing challenges in replacing reserves through exploration alone, acquisitions of advanced
developers and smaller producers become increasingly attractive at current gold prices“.

A top fund

It’s important to remember, however, that buying gold stocks rather than bullion itself adds an extra layer of risk for investors.

Operational problems are common across the mining industry and sometimes devastating for future earnings. Underwhelming exploration results can cause share prices to sink, and especially for junior miners. Production issues that drive up costs and hit revenues can be severe for even the largest of gold producers.

But investors can reduce (if not totally eliminate) such threats to overall returns by purchasing an ETF that tracks gold stocks. The iShares Gold Producers ETF (LSE:SPGP) is one I think merits serious consideration today.

It invests in 64 different mining companies, allowing it to absorb problems at one of two companies and still deliver a solid return. In the 12 months to February it delivered a decent return of 52.7%.

This ETF invests in some of the industry’s biggest players like Newmont, Agnico Eagle Mines, and Wheaton Precious Metals, providing it with extra robustness. But it also has holdings in dozens of mid-tier and junior miners, which in turn provides it with terrific growth potential.

Investors here pay an ongoing charge of 0.55%. But given its risk management qualities and the potential to provide stunning returns, I think it’s a great way for investors to consider investing in gold stocks.

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Going for gold

Fears of returning high inflation continue to power gold stocks higher. The iShares Gold Producers UCITS ETF (LSE:SPGP) has jumped 14.8% since the start of 2025 as investors have piled into precious metal stocks.

Gold’s hit a serious of record highs since the start of last year. And it’s showing no signs of slowing down, according to a growing number of analysts.

Last Thursday (27 February), Goldman Sachs researchers were the latest to hike their price forecasts. They think the yellow metal will end the calendar year at $3,100 per ounce, up from a previous target of $2,890.

An intensifying global trade war could push consumer price inflation (CPI) sharply higher. S&P Global thinks US tariffs on Canada and Mexico alone would boost CPI by 0.5% to 0.7% — assuming said taxes persisted through 2025 — which would in turn prompt the Federal Reserve to pause planned rate cuts.

But gold’s bull case isn’t just built around inflationary pressures. Other factors, from escalating geopolitical tensions to economic cooling in the US and China, are also helping bullion prices appreciate.

That’s enough about the gold price outlook. So what about the iShares Gold Producers ETF itself?

It’s important to say that investing in mining stocks as it does can be a risky business. A wide range of issues — from disappointing exploration results to power-related production outages — can spring up suddenly and cause severe damage to earnings forecasts. This in turn can pull share prices sharply lower.

But by investing in a range of shares (64 in total), this fund can help limit the impact of such problems on overall returns. Major holdings here include industry giants Agnico Eagle, Newmont and Barrick Gold.

Over the past year, this iShares fund has risen 44.3% in value.

Fizzing higher

Coca-Cola HBC (LSE:CCH) is another rock-solid stock worth considering in these turbulent times. This is demonstrated by its long record of unbroken annual dividend growth dating back to the early 2010s.

The business bottles and distributes some of the world’s most popular drinks labels including Coca-Cola itself, Fanta and Sprite. These five-star brands remain in high demand at all points of the economic cycle. Coca-Cola HBC can even hike prices on them without a significant dip in volumes, allowing it to overcome inflationary pressures.

Don’t just take my word for it though. Last year’s 13.8% organic sales rise demonstrates its ability to thrive even when consumer spending is under pressure.

Like any share, however, Coca-Cola HBC isn’t totally risk-free for investors. Adverse exchange rate movements have been problematic of late, reflecting trouble in its emerging markets.

But on balance, I’m expecting sales and profits to continue rising strongly over the near term. The business is tipping organic revenues and earnings to rise 6% to 8%, and 7% to 11% respectively, in 2025.

Coca-Cola HBC shares have risen 38.7% in the last year. I expect them to keep rising as investor demand for safe-haven shares increases.

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Such a rise for any share, commodity, or financial asset can lead to a sharp correction. It can lead to fears of overvaluation, and a possible surge in sellers seeking to book profits.

But in the case of gold, I think there’s a good chance prices will continue ascending. This is thanks to multiple important drivers like rising inflation expectations as central banks cut interest rates, intensifying conflict in the Middle East, and concerns over the economic and political situation in the US.

So I think investing in a gold-backed asset is worth serious consideration today. One of my favourites right now is the iShares Gold Producers ETF (LSE:SPGP).

A top ETF

This exchange-traded fund (ETF) gives investors indirect exposure to the rising gold price. In total, it holds shares in 61 different miners, the majority of which (65.4%) are industry giants with market capitalisations of $10bn or more.

Such a composition helps to give me peace of mind. Spreading my money across several dozen companies means less risk than investing in one or two specific miners. This is important to me given the high chance of operational problems that can smack revenues and push costs through the roof.

I also like the idea of owning shares in industry giants like Barrick Gold, Newmont, Wheaton Precious Metals, and Agnico Eagle. These miners have long track records of operational excellence, which — if they continue — could provide me with a better return than simply buying an ETF that tracks the gold price.

Be aware, however, that such outperformance is by no means guaranteed.

The fund has provided a healthy average annual return of 7.6% over the past decade. However, that’s slightly lower than the 7.8% corresponding return that the bullion-tracking iShares Physical Gold fund has delivered in that time.

Dividend reinvestment

A miner-focused ETF has another big advantage over a simple gold-tracking fund: dividends.

While dividends are never guaranteed, the iShares Gold Producers ETF contains many companies that have paid and continue to pay a regular dividend on their shares.

These cash rewards are reinvested in order to grow the value of the fund over time.

Because gold itself doesn’t generate dividends or interest, an ETF that simply tracks bullion prices lacks this potential for growth from dividend reinvestment.

Cost efficient

As with any ETF, investors pay an ongoing charge to hold this iShares product. This currently sits at 0.55%.

Fees like this obviously take a bite out of return. However, investors would potentially pay a lot more in trading fees and other costs (like stamp duty) by buying multiple individual gold shares for their portfolios.

What’s more, I still believe the fund could deliver healthy returns given the robust outlook for gold prices. Precious metal prices can go down as well as up, of course. But I think this fund’s worth a close look right now.

The post This ETF is soaring as the gold price booms! Is it time to buy? appeared first on The Motley Fool UK.

Invesco Physical Gold ETC

What it does: Aims to track gold’s spot price, backed up by physical gold bullion held by JPMorgan in secure vaults.

By Gordon Best. The Invesco Physical Gold ETC stands out as a substantial player in the precious metals market, boasting £13bn in assets. It offers investors a fairly straightforward way to gain exposure to gold, which has historically been a safe haven during periods of negative market performance. With a competitive 0.12% expense ratio, it provides a cost-effective entry to noteworthy performance, where investors saw a robust 23.77% return over the past year, and 49.18% over five years.

However, it’s worth being mindful of the inherent risks. Gold’s price can be pretty volatile. The fund has experienced a maximum decline of 41.78% since inception, underscoring the potential for significant declines during market turbulence. With one eye on the US election, and the expected cut in interest rates in many countries over the coming months, there’s no shortage of catalysts. Despite these challenges, I think it remains an attractive option for those seeking portfolio diversification. 

Gordon Best owns shares in JPMorgan Chase & Co.

iShares Gold Producers ETF

What it does: Aims to track the performance of an index of companies related to the exploration and production of gold.

By Mark David Hartley. iShares Gold Producers ETF (LSE: SPGP) is a UK-listed fund that gives shareholders exposure to 61 companies in the global gold industry. Top holdings include Newmont Corp, Barrick Gold, Agnico Eagle Mines and Wheaton Precious Metals. The fund’s benchmark index is the S&P Commodity Producers Gold Index. The ETF gives additional exposure to the broader market for those already invested in physical gold.

It has a price-to-earnings (P/E) ratio of 24 and a price-to-book (P/B) ratio of 2.1. The standard deviation is quite high, at 31.13%, reflecting its high volatility. The total expense ratio is 0.55%, slightly below the average for gold ETFs. The price is up 25.3% this year, slightly below the SPDR Gold Trust, which closely tracks the price of physical gold. Since it’s more volatile than gold, it could result in better returns but at the risk of higher losses. 

Mark David Hartley does not own shares in any companies mentioned.

iShares Physical Gold ETC

What it does: The iShares Physical Gold ETC tracks the spot price of gold.

By Paul Summers. Having some exposure to gold is a great way of spreading risk within a portfolio, in my opinion. However, the issue with buying an ETF chock full of miners is that it behaves more like an equity fund rather than one in tune with the price of the shiny stuff. This could mean a rollercoaster ride for investors. 

For this reason, my pick would be iShares Physical Gold ETC (LSE: SGLN). At just 0.12%, this ETC is one of the cheapest on the market. It’s also one of the largest. As I type, the price has climbed almost 50% in the last five years.

This is not to say that it won’t experience periods of unpopularity, such as when the appetite for glitzy growth stocks rises among investors.

On the other hand, it might just help to preserve wealth when the next market crash comes.

Paul Summers has no position in iShares Physical Gold ETC

VanEck Junior Gold Miners UCITS ETF

What it does: VanEck Junior Gold Miners UCITS ETF holds shares in 84 smaller mining companies from across the world.

By Royston Wild. Rather than simply investing in a gold-price-tracking ETF, one can profit from a rising bullion price by buying a fund that holds shares in gold mining companies.

ETFs that invest in world-class miners like the VanEck Gold Miners UCITS ETF are extremely popular. Investors seeking a better return might also want to check out the VanEck Junior Gold Miners UCITS ETF (LSE:GDXJ).

As its name implies, this fund invests in small companies that are at the early stage of their growth cycle. They have the potential to soar in value as they ramp up their operations. Such businesses could also become takeover targets for larger gold producers.

Some of the biggest holdings here include Kinross Gold, Alamos Gold and Pan American Silver. Around 43% of the fund is locked up in its 10 largest holdings.

Investing in junior miners is higher risk than gaining exposure to more established operators. These businesses often have limited cash reserves, while exploration projects also have a low success rate.

But for investors with a greater risk appetite, this could be a more lucrative way to consider playing the gold price.

Royston Wild does not own any of the financial securities described above.

VanEck Junior Gold Miners UCITS ETF 

What it does: This is the only ETF in Europe providing exposure to small gold miners. 

By James Fox. VanEck Junior Gold Miners UCITS ETF (LSE:GDXJ) is one of the best performing gold-mining ETFs over the past 12 months, with shares surging by 51% at the time of writing. 

The fund invests in the stock of smaller gold miners – hence junior – some of which are in the earlier stages of exploration. 

And because of their respective nascency, the stocks held in the fund tend to be more sensitive to underlying gold prices than their mature peers. 

In other words, the fund can be more volatile than some of its peers.

So, if you’re bullish on gold, this is a great fund to own, but if you’re not, it’s one to avoid as it’s more sensitive to downward movements in gold prices. 

While many investors may see this ETF as a complement to more traditional gold holdings, the fund offers the potential for much stronger growth driven by the aforementioned sensitivity and the possibility that these smaller companies will be premium takeover targets. 

James Fox does not own shares in VanEck Junior Gold Miners UCITS ETF.

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Bank of Georgia Group

Bank of Georgia‘s (LSE:BGEO) share price has plummeted by double-digit percentages in recent weeks. I think this represents a great dip-buying opportunity for investors seeking value shares with huge dividend yields.

For 2024, the FTSE 250 bank trades on a forward price-to-earnings (P/E) ratio of 3.1 times. As for dividend yields, these ring in at 7.6% and 8.1% for this year and next year respectively. To put that in context, both figures are more than double the average for FTSE 250 shares.

Bank of Georgia’s slump reflects growing concerns over rising political uncertainty in the country and, more specifically, its future relationships with Russia and the European Union. These issues will naturally have significant implications for Georgia’s economy and the companies that operate there.

Still, I’d argue that Bank of Georgia’s rock-bottom P/E ratio of 3 times more than reflects any dangers to its profits.

On balance, I think the bank remains a great way to capitalise on booming financial products demand in its emerging market. Profits rose 16% in the first half of 2024 as loan levels rocketed, latest financials showed.

I’m also encouraged by its acquisition of Ameriabank this year. This gives it significant exposure to Armenia, another of the region’s fastest-growing economies.

While it’s not without risk, I think the firm could prove to be an excellent long-term prospect.

iShares Gold Producers ETF

Precious metals prices have boomed in 2024. Gold, for instance, has soared to record highs across multiple currencies, and in sterling terms broke through £2,000 per ounce late last month for the first time.

Silver’s also tearing it up, and on a dollar basis has struck its highest since 2012 in recent days.

I think investing in a gold-based exchange-traded fund (ETF) could be a good idea in this climate. One that’s caught my eye is the iShares Gold Producers ETF (LSE:SPGP), which has a relatively low annual cost of 0.55%.

As the name suggests, it invests in gold mining companies rather than tracking the bullion price itself. This has a huge advantage for me as an investor, as many of the miners it owns pay a dividend which the fund automatically reinvests.

On the downside, purchasing this mining-focused gold ETF exposes me to the problematic nature of metals production. However, because the fund invests in a wide range of different companies, the risk of such troubles on my overall returns are reduced, but not eliminated.

Of course, there’s no guarantee that gold prices will keep rallying. However, a blend of central bank rate cuts, ongoing worries over the US and Chinese economies, and escalating trouble in the Middle East all mean the precious metal could continue soaring in October and beyond.

The post A top dividend share and an income-generating ETF to consider in October! appeared first on The Motley Fool UK.

There are multiple factors driving the gold rush, such as the expectation that inflation will rise as interest rates are reduced by central banks. Rate cuts by the Federal Reserve in particular are helping the yellow metal by weakening the US dollar. This makes it more cost-effective to buy buck-denominated assets like gold.

Safe-haven gold buying is also accelerating following Ukraine’s invasion of Russia and fresh violence in Gaza and Israel. These recent actions are fuelling fears of widening conflicts in Europe and the Middle East, respectively.

A top ETF

Investors can tap into gold’s bull run in many ways. One way that I think is worth serious consideration is buying an exchange-traded fund (ETF) like the iShares Gold Producers UCITS ETF (LSE:SPGP).

As the name implies, this provides exposure to companies that source most of their revenues from gold mining. And over the past year it’s provided an impressive 21.4% return.

There are drawbacks to owning a fund that focuses on gold miners, compared to one that simply tracks the gold price. Operational problems are common in the mining sector, and can be hugely expensive once lost revenues and big costs are taken into account.

However, this iShares product greatly reduces this risk by investing in a wide raft of companies. In fact it owns stakes in 62 companies today, including many heavyweight names with great track records such as Newmont, Agnico Eagle and Barrick Gold.

With an expense ratio of 0.55%, it has one of the lowest fees attributable to this sort of ETF too.

A great gold stock

Investing in a single mining stock can be more risky, for the reasons outlined above. But there’s also the opportunity to make spectacular, sector-beating returns.

This is something that buyers of Centamin (LSE:CEY) shares have experienced over the past year. The FTSE 250 miner’s share price has rocketed 54% during the past 12 months.

This reflects, in part, ongoing production at the flagship Sukari mine in Egypt, with 2024 output on course to rise to 470,000-500,000 ounces in 2024.

It’s also due to promising drilling work at its Doropo exploration project, a huge project in the Côte d’Ivoire. Centamin is expecting to receive a mining licence here by the end of the year, although this isn’t guaranteed and problems on this front could harm the share price.

Finally, Centamin’s share price surge reflects an explosion of interest from value seekers looking to get in on the gold rush.

As the chart below shows, the FTSE 250 company still trades at a large discount to the broader gold mining sector, based on the forward price-to-earnings (P/E) ratio). This could provide the base for even more industry-beating share price gains looking ahead.

The post A cheap momentum share and a low-cost ETF I’d buy as gold prices rocket! appeared first on The Motley Fool UK.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Baillie Gifford Japan Trust 

What it does: Baillie Gifford Japan Trust focuses on achieving long-term capital growth primarily by investing in smaller to medium-sized Japanese companies. 

By Mark Tovey. I plan to buy shares in Baillie Gifford Japan Trust (LSE:BGFD). That’s because the Bank of Japan, after 20 years of keeping interest rates at zero, is expected to change direction as a new governor takes charge in April. That should cause the yen to strengthen against other currencies, giving Japanese consumers more purchasing power. 

The yen has already begun to stage a comeback, rising 16% this year above its low of 2022.  

Of course, a stronger yen could throw cold water over the profitability of some Japanese exporters, like Canon and Toyota. 

But I’m not too worried about that risk, because Japanese companies have increasingly outsourced production overseas in the last two decades. While 15% of manufacturers made their products abroad at the turn of the millennium, that number has now almost doubled to 25%.  

In short, the yen could be about to stage a bull run, raising up Japanese consumers and producers that have outsourced operations.  

Mark Tovey does not own shares in Baillie Gifford Japan Trust, Toyota or Canon.  

CT European Select

What it does: CT European Select Fund invests in European stocks. Its aim is to achieve above-average capital growth.  

By Edward Sheldon, CFA. Europe is home to some world-class companies and I see the CT European Select Fund as a good way to get exposure.

There are a number of things I like about this particular fund. One is that it has a focus on higher quality companies that have the potential to grow their profits steadily year on year.

Another is the performance track record. Over the last five years, this fund has returned about 50%. That’s a very respectable performance and a much higher return than the FTSE 100 has generated.

Finally, I like the fact that fees through Hargreaves Lansdown are just 0.65% per year. That’s quite low for an actively managed fund.

One risk to be aware of is that the fund is relatively concentrated. This means that stock-specific risk is higher than average.

Overall, however, I think this fund has a lot of appeal.

Edward Sheldon has positions in the CT European Select Fund and Hargreaves Lansdown.

iShares Gold Producers UCITS ETF  

What it does: iShares Gold Producers UCITS ETF gives investors exposure to a wide range of gold mining companies.

By Royston Wild. Gold’s recent burst back above $2,000 per ounce suggests now could be a good time to gain exposure to the safe-haven metal. Further gains could be in store with this critical technical level taken out, and macroeconomic and geopolitical uncertainty dragging on. 

One way individuals can do this is by investing in the iShares Gold Producers UCITS ETF (LSE:SPGP). This exchange-traded fund has more than $1.7bn locked up in around 60 gold mining companies. 

The fund is highly geared towards Canadian-domiciled businesses, though it also has large holdings in Australian, US and South African miners. Some of its key holdings include Barrick Gold, Newmont and Franco-Nevada. 

The beauty of investing in this ETF is that, unlike ones that simply track the gold price, this particular investment vehicle pays dividends. These are then automatically reinvested back into the fund at no extra cost. 

Royston Wild does not have a position in iShares Gold Producers UCITS ETF, Barrick Gold, Newmont or Franco-Nevada.

LF Blue Whale Growth Fund

What it does: LF Blue Whale Growth Fund invests in stocks that have the ability to grow and improve profitability over the long term.

By Paul Summers: ‘Growth’ is something of a dirty word right now. With interest rates still climbing, many investors are focusing on the short term and buying shares in more established (but not necessarily good) companies. I’m inclined to do the opposite.

The LF Blue Whale Growth Fund invests in a concentrated portfolio of high-quality, blue-chip stocks that have solid futures. We’re talking about those with valuations over £100bn, not market tiddlers. 

According to its latest fact sheet, the fund has delivered just over 10% annualised since its launch in 2017. Although past performance is no guide to the future (and fees need to be taken into account), that’s higher than the 7.9% average achieved across similar funds. It’s also after a period of poor performance, likely due to almost half the portfolio being invested in tech companies.

When sentiment reverses (and I’m very confident it will), I want to be ready.

Paul Summers has positions in LF Blue Whale Growth Fund.

The L&G Cyber Security ETF

What it does: The L&G Cyber Security ETF tracks a basket of companies active in the cybersecurity industry.

By Ben McPoland.Hardly a week goes by without another major hacking incident. And it’s likely to get worse, as cybercrime is expected to cost the world around $10.5trn annually by 2025. This means cybersecurity is becoming an absolute necessity for all companies, organisations and governments.

I think L&G Cyber Security ETF (LSE:ISPY) is an excellent vehicle to ride this long-term megatrend. This exchange-traded fund (ETF) from Legal & General contains 43 stocks. The top holdings are Palo Alto Networks, Cloudflare and Fortinet.

Cybersecurity threats are constantly changing as the technologies that hackers use get ever more sophisticated. And artificial intelligence is set to up the ante in this never-ending game of cat and mouse. This fund provides broad exposure to the whole industry.

I should note that it carries a 0.69% ongoing charge, which isn’t as cheap as some ETFs. That said, I do consider it a price worth paying to capture the outsized growth potential of the cybersecurity sector. The fund is up 150% since launching in 2015.

Ben McPoland own shares in L&G Cyber Security ETF and Legal & General.

Scottish Mortgage Investment Trust

What it does: Scottish Mortgage is a tech-heavy investment fund with investments worldwide including Tencent, ASML, Alibaba, Amazon and NIO. 

By John Fieldsend, I’m not usually the biggest fan of investment funds. Those fees for managing the fund, sometimes as high as 2%, really eat into any returns I’d get. So the first thing I like about Scottish Mortgage (LSE: SMT) is low fees of only 0.23%

The next thing is a stellar track record. Between 1993 and 2020, the fund returned roughly 1,500% for investors. In comparison, the S&P 500 – which also contains many large tech companies – returned around 700% over the same period. 

The icing on the cake for me is the nature of the fund’s portfolio. With around 30% in private equity and large positions in foreign-owned companies that I’d find difficult to research like Tencent or ASML, I feel an investment in Scottish Mortgage gives me exposure and diversification I wouldn’t otherwise get. 

All these reasons put together are why I took the plunge and picked up some shares recently.

John Fieldsend own shares in Scottish Mortgage.

Seraphim Space Investment Trust

What it does: Seraphim Space Investment Trust is the world’s first publicly listed fund that focuses on space tech.

By John Choong: Seraphim Space Investment Trust (LSE:SSIT) is a fund that invests in early-stage companies that focus on developing space technologies. These investments are made with the intention to dominate the space tech market through being market leaders within industries such as climate, communications, mobility, and even cybersecurity.

Currently, the launch market is seeing a deficit in supply for the first time in decades. This is because there’s been an uptick in the use cases for satellites and other space-related technologies. As such, with investments in companies such as Rocket Lab, Airbus, and Blue Origin, Seraphim is one such fund to capitalise on the increase in demand for space products.

Given that the trust is currently trading at a 60% discount from its IPO price, it wouldn’t be unreasonable to argue that its shares are worth investors buying now for long-term potential. After all, its current share price is 50% lower than its net asset value (NAV) per share.

John Choong has no position in any of the shares mentioned.

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