BlackRock Energy and Resources Trust vs PIMCO Strategic Income Fund

This page compares BlackRock Energy and Resources Trust and PIMCO Strategic Income Fund Inc, exploring their business models, financial performance, and market context in clear, neutral terms for readers. It presents context, methodology, and key considerations to help users understand where these funds sit in the market. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

BGR

Metric

RCS

$376.24M

Market Cap

$284.56M

N/A

Potential Profit

N/A

Analyst Rating

N/A

Investment Analysis

BlackRock Energy and Resources Trust

BGR

Pros

Invests globally in equity securities of energy and natural resources companies across market capitalizations, providing diversified sector exposure.
Managed by BlackRock, a reputable asset manager with experienced portfolio managers focused on current income and capital appreciation.
Utilizes equity derivatives with an emphasis on option writing to enhance income potential alongside traditional equity investments.

Considerations

Trades as a small-cap fund with a relatively modest market capitalization around $340 million, which may limit liquidity.
Has underperformed the broad market in recent periods, with lower returns compared to the SPY ETF over one year and three months.
Exposed to the volatility and cyclicality of energy and natural resources sectors, which can be affected by commodity and geopolitical risks.

PIMCO Strategic Income Fund

RCS

Pros

Seeks to generate income higher than intermediate-term U.S. debt securities, targeting attractive income with potential capital appreciation.
Managed by PIMCO, a leading fixed income investment manager with extensive experience in bond markets and active income strategies.
Offers a non-diversified structure allowing focused portfolio management aimed at income generation across multiple fixed income sectors.

Considerations

Charges a relatively high total expense ratio above 5%, including significant interest and advisor fees, which may reduce net returns.
Being a closed-end fund, its shares may trade at significant premiums or discounts to net asset value, adding valuation risk.
Interest rate sensitivity and credit risk inherent in intermediate-term debt securities pose potential headwinds in a rising rate environment.

About The Companies

BlackRock Energy and Resources Trust (BGR)

BlackRock Energy and Resources Trust (BGR) is a closed-end investment fund aiming for total return through a mix of income and long-term capital growth. It primarily invests in the global energy and natural resources sectors, a space known for its cyclical nature. Under normal conditions, the trust commits at least 80% of its assets to equity securities of companies in industries like oil, gas, and consumable fuels. A key part of its strategy involves writing (selling) call and put options on its portfolio securities to generate additional income. As a closed-end fund, its shares trade on a stock exchange, and the price can differ from its underlying net asset value. Managed by BlackRock Advisors, LLC, BGR offers investors a way to gain managed exposure to this specific market, though it's important to remember that the value of such investments can fall as well as rise.

PIMCO Strategic Income Fund (RCS)

PIMCO Strategic Income Fund, Inc. is a closed-end investment fund, which means it trades on the stock exchange like a share but holds a portfolio of other assets. Its primary goal is to generate a high level of income for investors, potentially more than what might be expected from high-quality, medium-term government bonds. While income is the main focus, the fund also aims for capital appreciation where possible. To achieve this, it invests in a diverse mix of debt securities. These can include government-issued bonds from the US and abroad, mortgage-related securities, and other asset-backed products. The fund is managed by PIMCO, a well-known global investment management company. As with any investment, it's important to remember that the value of the fund can go down as well as up, and income is not guaranteed.

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Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

BlackRock Energy and Resources Trust vs PIMCO Strategic Income Fund

Comparison Snapshot

Investment Analysis

BlackRock Energy and Resources Trust

Pros

Considerations

PIMCO Strategic Income Fund

Pros

Considerations

About The Companies

Buy BGR or RCS in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

BlackRock Energy and Resources Trust vs PIMCO Strategic Income Fund

Comparison Snapshot

Investment Analysis

BlackRock Energy and Resources Trust

Pros

Considerations

PIMCO Strategic Income Fund

Pros

Considerations

About The Companies

Buy BGR or RCS in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Liberty All-Star Growth Fund vs PIMCO Strategic Income Fund

Frequently asked questions

What are these funds trying to achieve, in simple terms?

How does leverage or income strategy affect risk in these funds?

What is a closed‑end fund (CEF), and how does it relate to the second stock?

What does diversification mean in the context of these funds?

What are the main cost considerations for each fund?

How do performance comparisons help in evaluating these funds?

What market conditions are likely to affect these funds differently?

How does liquidity impact investor access to these funds?

What should a beginner consider before comparing these funds?

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Comparison Snapshot

About The Companies