2 of my best investment trusts to buy today

I’ve been looking at options to diversify my portfolio. I think these two choices are my best investment trusts to buy today to do just this.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

I’ve been looking at some of my best investment trusts to buy. They can be a great way to diversify my portfolio in addition to the stocks I own. After all, investment trusts are simply a type of fund that trades on an exchange, with various different strategies that I can choose from.

Let’s take a look at two that I’d buy today.

Digital infrastructure

I view Big Data as one of the next big mega-trends. Oracle say this is “data that contains greater variety, arriving in increasing volumes and with more velocity”.

Should you invest £1,000 in Blackrock World Mining Trust Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Blackrock World Mining Trust Plc made the list?

See the 6 stocks

This brings me to the first investment trust, Digital 9 Infrastructure (LSE: DGI9). It invests in a range of digital infrastructure assets, such as subsea fibre, data centres, and also wireless tower networks. According to Digital 9 Infrastructure, internet traffic was predicted to increase by an average of 30% every year, even before the pandemic. Therefore, I view the trust as an excellent way of gaining exposure to the growth in Big Data in the years ahead.

Digital 9 Infrastructure targets both income and capital returns for its investors. However, it’s a fairly new trust, having only listed through an initial public offering (IPO) back in March 2021. As such, there’s limited track record on dividend payments. Also, the trust has been highly acquisitive since the IPO. It raised an additional £275m by way of a share placing, and has acquired numerous other digital assets in a short space of time. This is in line with its strategy, of course, but the limited track record does heighten the risk slightly.

The trust also incorporates the UN’s Sustainable Development Goal 9 into its investment process, which is to build resilient and sustainable infrastructure. This is represented by the ‘9’ in the trust’s name. It’s a forward-thinking approach to digital infrastructure investments, in my view, given the concerted efforts towards sustainability today.

So, on balance, I think this is one of my best investment trusts to buy.

A diversified mining trust

I’d also add the BlackRock World Mining Trust (LSE: BRWM) to my portfolio. It invests in a diversified mix of metals and mining assets across the world.

The trust aims to maximise total shareholder returns. It certainly achieved this last year as the dividend yield was 4%, and the trust’s net asset value increased by over 13%. It’s important to note that commodity prices can be highly volatile, so these returns are certainly not guaranteed. The strategy can also use leverage, which can amplify both gains and losses. This does increase the risk of the investment.

There’s also a sustainability benefit to investing in the trust. This is because certain metals are crucial components in things like electric vehicles (EVs), batteries, and wind turbines. For example, EVs require three- to-four times as much copper as standard vehicles. The BlackRock World Mining Trust currently has 21% of its assets exposed to copper, according to its factsheet.

I do like the diversification that this trust can bring to my portfolio. I would gain exposure to an experienced team that invests in critical resources for decarbonisation and renewable energy sources. So, taking everything into account, I’d buy this trust in my portfolio today.


Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Dan Appleby has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Rolls-Royce's Pearl 10X engine series
Investing Articles

Rolls-Royce shares have reached £10. Too late to buy?

Selling for pennies as recently as 2022, Rolls-Royce shares recently topped a tenner apiece. Our writer assesses whether he's too…

Read more »

UK coloured flags waving above large crowd on a stadium sport match.
Investing Articles

Meet the $2 stock up 366% that UK investors are piling into

UK stock investors have been snapping up this meme stock recently. Incredibly, it has more than quadrupled since June! What's…

Read more »

Middle-aged Caucasian woman deep in thought while looking out of the window
Investing Articles

Down 49%, is this well-known name the deep-value stock it seems?

Our writer has been tempted to add more B&M shares to his portfolio after a recent tumble. So what's holding…

Read more »

Abstract 3d arrows with rocket
Micro-Cap Shares

After falling 80% from a 52-week high, is this penny share a screaming buy?

This penny share company skyrocketed earlier this year, but the share price has since fallen back. Is it a new…

Read more »

British Pennies on a Pound Note
Investing Articles

This penny stock rose 49% in a year. Here’s why it may still be a terrific bargain

This penny stock has soared by 49% in 12 months -- but still sells for far less than the sum…

Read more »

Businessman using pen drawing line for increasing arrow from 2024 to 2025
Investing Articles

MHA is a UK stock market success story that deserves your attention

MHA listed on the UK’s stock market in April and has performed extremely well. Dr James Fox explains why the…

Read more »

A senior man using hiking poles, on a hike on a coastal path along the coastline of Cornwall.
Investing Articles

£20,000 in savings? Here’s how a Stocks and Shares ISA could generate £621 a month of passive income – tax-free!

Christopher Ruane explains how a Stocks and Shares ISA could potentially generate sizeable long-term passive income streams from proven businesses.

Read more »

A rear view of a female in a bright yellow coat walking along the historic street known as The Shambles in York, UK which is a popular tourist destination in this Yorkshire city.
Investing Articles

Up 269% in 5 years, could the Marks and Spencer share price go even higher?

Christopher Ruane explains some of the reasons the Marks and Spencer share price has boomed in recent years -- and…

Read more »