MXI - BCX: A 7.8%-Yielding CEF With Diversified Exposure To Commodities

The BlackRock Resources & Commodities Trust (NYSE:BCX) with $880 million in assets under management is a closed-end fund that invests in companies with exposure to commodities. What's interesting here is that beyond simply energy producers and miners, BCX also holds stocks from other sectors that benefit from broader global demand of resources. The fund utilizes a call writing strategy to enhance income with a monthly distribution that currently yields 7.8%. We like BCX for several reasons including the unique strategy, income component, performance momentum in 2019, and current discount to NAV of 12%.