BlackRock Resources & Commodities Strategy TrustTortoise Energy Infrastructure

BlackRock Resources & Commodities Strategy Trust vs Tortoise Energy Infrastructure

BlackRock Resources & Commodities Strategy Trust vs Tortoise Energy Infrastructure compares two business models, contrasts potential financial performance, and situates each within current market cont...

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Fed Rate Policy 2025: Inflation-Resistant Stocks

Fed Rate Policy 2025: Inflation-Resistant Stocks

The Federal Reserve is holding interest rates steady, prioritizing the fight against tariff-driven inflation over employment risks. This creates an investment opportunity in companies that are well-equipped to handle a high-interest-rate environment and persistent inflation.

Published: August 22, 2025

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Paper Vs. Physical

Paper Vs. Physical

Discover a carefully curated collection of investments that balance commodity price speculation with the companies that bring those resources to market. Our analysts have selected these assets to give you exposure to both sides of the materials economy in one strategic package.

Published: June 17, 2025

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Investment Analysis

Pros

  • Offers high current income with a dividend yield above 7%, supported by a strategy focused on commodities and natural resources equities.
  • Invests in a diversified portfolio of global commodity and resource companies, including major energy and mining firms.
  • Has delivered strong long-term performance, with a hypothetical $10,000 investment growing to over $18,000 in ten years.

Considerations

  • Carries a non-diversified structure, increasing exposure to sector-specific risks and volatility.
  • Relies on derivatives and option writing, which can amplify losses during adverse market conditions.
  • Does not follow an ESG investment strategy, which may deter investors seeking sustainable or impact-focused holdings.

Pros

  • Provides a high distribution yield, currently above 8%, from investments in energy infrastructure companies.
  • Concentrates in midstream energy assets, which tend to offer stable cash flows and are less sensitive to commodity price swings.
  • Portfolio is dominated by large, established energy infrastructure firms, supporting operational resilience.

Considerations

  • High expense ratio of nearly 2.8%, which can erode returns over time.
  • Portfolio is highly concentrated, with over 60% of assets in the top ten holdings, increasing single-stock risk.
  • Turnover ratio is very high, suggesting frequent trading that may lead to higher transaction costs and tax inefficiency.

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