Investors often seek solace in precious metals instruments during a downturn. These investments are considered to be a natural hedge against a rapidly declining currency. Even a small portion of precious metals in a portfolio can provide significant protection against inflation. In addition, when markets are slowing down, securities related to these industries acquire greater significance. At such times they provide better returns than equity securities, even outperforming them. Precious metals funds are the best option for investing in this sector since they possess the advantages of professional insight and well-diversified portfolios.
Below we will share with you 5 top rated precious metals mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all precious metals funds, investors can click here to see the complete list of funds.
Tocqueville Gold (TGLDX) seeks long-term capital growth. It invests a large share of its assets in companies across the globe involved in mining and processing gold. The fund also invests in other precious metals. Not more than 20% will be directly invested in gold bullion or precious metals. The precious metals fund has a five year annualized return of 4.21%.
The fund has an expense ratio of 1.34% as compared to category average of 1.41%.
Oppenheimer Gold & Special Minerals A (OPGSX) invests a lion’s share of its assets in those companies whose primary operations are related to mining, processing or dealing of gold or other metals. It invests in both domestic and foreign firms. This non-diversified precious metals fund has a five year annualized return of -0.80%.
Shanquan Li is the fund manager and has managed this fund since 1997.
Van Eck Global Hard Assets A (GHAAX) seeks capital growth in the long run. A major portion of its assets is invested in companies and other securities whose operations are related to “hard assets”. These “hard assets” comprise gold and other precious metal, industrial metal, and energy among others. This non-diversified fund may invest a maximum of 20% in investment companies, which may also include ETFs. The fund has a five year annualized return of 11.54%.
As of March 2014, this fund held 57 issues with 4.96% of its assets invested in Glencore Xstrata PLC.
OCM Gold Investor (OCMGX) seeks capital appreciation over long run. It invests a lion’s share of its assets in domestic and foreign companies related to gold mining and precious metals sector. Generally it invests in gold producers or gold mining exploration firms. This non-diversified precious metals fund has a five year annualized return of -0.23%.
The fund has an expense ratio of 2.22% as compared to category average of 1.41%.
Vanguard Precious Metals and Mining Investor (VGPMX) invests a major portion of its assets in domestic and foreign companies that are mainly involved in mining, processing and distribution of precious and rare metals. A maximum of 20% may be directly invested in gold and silver among other precious metal bullions. This non-diversified precious metals fund has a five year annualized return of -0.26%.
Jamie J. Horvat is the fund manager and has managed this fund since 2014.
To view the Zacks Rank and past performance of all precious metals mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Read the analyst report on TGLDX
Read the analyst report on OPGSX
Read the analyst report on GHAAX
Read the analyst report on OCMGX
Read the analyst report on VGPMX
View All Zacks #1 Ranked Mutual Funds
Zacks Investment Research
- Basic Materials Industry
- Personal Investing Ideas & Strategies
- precious metals