Since posting multi-year highs in mid-January, share prices for resource giants BHP and RIO have pulled back over 10%.
Over the last week, both shares have traded in a “higher low” pattern which has triggered a buy signal from our proprietary Algo engine.
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With general market pricing appearing to be at, or near, full value, we are cautious about buying these names outright.
However, Investors looking to capture gains in the Australian resource sector without having to pick one stock can buy the BetaShare Resource Exchange Traded Fund (ETF).
The code is QRE, it’s made up of 10 Australian resource companies and is current paying a yield of 3.9%.
Of the 10 companies that make up the fund, BHP, RIO and Woodside Petroleum make up 52% of the weighting.
Contact us for more information on QRE, or the other ASX-based ETFs we are currently following.
