Performance review: Resource shares have been stellar performers over the past two years. The general mining index, which is made up of mining heavyweights such as Anglo American, BHP Billiton and Glencore, has recovered well from the 2014 dip, growing 65%. The gold miners index grew 58% over the period on the back of a 17% improvement in the rand gold price. The platinum mining companies index grew 39%. The chemicals and forestry and paper segments were the laggards, and have been largely flat.
NewFunds S&P GIVI SA Resource 15 and Satrix Resi 10, the only two ETFs that track the resources indices, have benefited from the increased investor demand for mining counters. NewFunds S&P GIVI SA Resource 15 returned 27.84% a year during the two years to end-October ahead of Satrix Resi 10 which returned 8.37%.