GMO is an investment manager based in Boston, was founded in 1977, and offers actively managed mutual funds across equities, fixed income, multi-asset class portfolios, and alternative strategies. GMO’s investment strategy is to make investment decisions on a long-term basis to determine when individual securities are undervalued or overvalued and take corresponding action.
The funds are handled by teams of experts who use different methods to make investment decisions. GMO also considers environmental, social and governance (ESG) factors as part of GMO’s investment analysis.
We have picked three GMO mutual funds — GMO Global Asset Allocation Fund GMOOX, GMO International Equity Fund GMOUX and GMO Resources GEACX — which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
GMO Global Asset Allocation Fund invests most of its assets in equity funds but may also allocate capital to U.S. and international stocks, fixed-income securities across credit qualities and maturities, and commodities, depending on market opportunities.
Ben Inker has been the lead manager of GMOOX since Oct. 22, 1996. Most of the fund’s holdings were in companies, such as GMO Alternative Allocation Fund (15.5%), GMO International Equity Fund (15.2%) and GMO Asset Allocation Bond Fund (14.1%) as of Feb. 28, 2026.
GMOOX’s 3-year and 5-year annualized returns are 15.8% and 8.7%, respectively. Its net expense ratio is 0.12%. GMOOX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other 1 (Strong Buy) and 2 Ranked Mutual Funds, please click here.
GMO International Equity Fund invests most of its assets in developed-market equities outside the United States, while retaining the flexibility to invest in U.S. Treasury securities, money market funds and other short-term instruments.
Warren Chiang has been the lead manager of GMOUX since March 31, 2024. Most of the fund’s holdings were in companies, such as ASML Holding N.V. (4.6%), Sumitomo Electric Industries, Ltd. (3%) and Banco Bilbao Vizcaya Argentaria, S.A. (2.8%) as of Feb. 28, 2026.
GMOUX’s 3-year and 5-year annualized returns are 27.3% and 15.4%, respectively. Its net expense ratio is 0.77%. GMOUX has a Zacks Mutual Fund Rank #1.
GMO Resources fund invests most of its assets in stocks of natural resources companies, including businesses involved in producing, processing, transporting and supplying resources, as well as firms that support the industry through equipment and infrastructure services.
Thomas R. Hancock has been the lead manager of GEACX since Dec. 28, 2011. Most of the fund’s holdings were in companies, such as Darling Ingredients Inc. (5.1%), Rio Tinto Group (4.7%) and Kosmos Energy Ltd. (4.4%) as of Feb. 28, 2026.
GEACX’s 3-year and 5-year annualized returns are 6.2% and 3.5%, respectively. Its net expense ratio is 0.82%. GEACX has a Zacks Mutual Fund Rank #1.
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This article originally published on Zacks Investment Research (zacks.com).
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