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.
(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
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
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.
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