Precious metals funds hold various mining stocks in precious metal industries such as gold, silver, platinum, and palladium. These funds may invest in such stocks in the U.S. or abroad. In some instances, precious metals mutual funds hold physical gold and silver.
While some funds offer a significant amount of exposure to non-gold precious metals, most funds prioritize investments in gold mining stocks.
Different factors determine the performance and attractiveness of precious metals mutual funds. The country in which a precious metals mutual funds operates is one of the most significant factors affecting their attractiveness for potential investors. Other factors include expense ratio, yields, risk level, and annualized returns.
1. Wells Fargo’s Advantage Precious Metals
Wells Fargo’s Wells Fargo Advantage Precious Metals fund opened its doors for the first time in 1998. The fund aims to protect the purchasing power of investors and ensure long-term capital growth of their investments.
The fund makes its best efforts to invest 80% or more of its assets into companies that are actively exploring, mining, or processing for gold as well as companies that deal in gold or make half of their revenues from gold related business activities.
Wells Fargo’s expense ratio is 1.1% which is above average when compared to other funds in the industry. The fund has over $320 million in portfolio assets. Its five-year annualized returns stand at -18.5%.
2. Fidelity Select Gold Portfolio Fund
The Fidelity Select Gold Portfolio mutual fund was established years after Wells Fargo’s fund. In 2006, the Fidelity Investments Group opened its doors. It focuses on helping investors with appreciation of capital.
The funds expense ratio of 1.2% is above average for its category. Its five-year annualized return is -19.7% while its total portfolio is valued at over $860 million.
3. Gabelli Gold Fund
The Gabelli Gold Fund was established in 2003. The firm focuses on long-term appreciation of capital. It makes this possible by investing 80% or more of its assets in U.S. domestic and foreign-issued equity securities of organizations with operations in the gold sector. Its total portfolio is valued at over $170 million.
The 1.6% expense ratio of Gabelli is applaudable and so is its above-average risk level. Its five year annualized returns is -17.1%.
4. USAA Precious Metals and Minerals Fund
The USAA Precious Metals and Minerals Fund was established in 1984. Its portfolio assets of $690 million has been instrumental in helping it achieve its investment objectives for long-term capital appreciation and preservation of purchasing power. The organization’s expense ratio is 1.25%. It offers a dividend yield of 1.75% and five-year annualized return of -21%. The fund’s risk level is slightly above average.
4. Vanguard Precious Metals and Mining Fund
Established in 1984, the Vanguard Precious Metals and Mining Fund has been able to amass just under $2 billion in total assets.
The fund’s expense ratio is 0.29%. It offers investors a dividend yield of just over 2% yearly and a five-year annualized return of -14.8%. The assets of the fund are invested in up to a maximum of 20% directly in precious metals.
5. Tocqueville Gold Fund (TGLDX)
Tocqueville Gold Fund (TGLDX) uses a value approach to investing. It identifies companies that are undervalued to invest in. This allows for greater profit margins for investors.
Tocqueville invests at least 80% of net assets in precious metals and companies that operate in the gold mining or processing industry.
Its annual fund operating expenses stand at 1.43%. The total YTD returns of the gold fund is 22.24%. The firm views gold as a key component for a long-term , diversified portfolio.
6. U.S. Global Investors Gold & Precious Metals Fund (USERX)
U.S. Global Investors Gold & Precious Metals Fund (USERX) is America’s first no-load gold fund. The fund focuses on monetary stability, capital appreciation, and protection against inflation.
In normal market conditions, the firm invests 80% of its net assets in companies the gold sector. The organization has $102.9 million in assets under management. It reported a gross expense ratio of 1.78%. It reported YTD returns of 35.67%.
7. Van Eck International Investors Gold
Established in 1956, Van Eck focuses on long-term capital appreciation through investments in the common stocks of gold mining companies. 80% of the total assets of the fund is invested in the gold mining industry.
25% of its assets are invested in gold mining stocks.The expense ratio of the organization is 1.44%. It declares and pays dividends in the months of March, June, September, and December.
8. American Century Global Gold Investor
American Century Global Gold Investor invests in securities of global companies with operations related to gold or other precious metals. The fund provided returns of 6.2%.The fund has an expense ratio of 0.67% which is lower than the category average of 1.41%.
Most of the organization’s investments are in companies involved in processing, mining, fabricating, and distribution of precious metals. It invests in such companies with the intention to increase capital and dividends.
9. Equity Trust Company
It is no surprise that Lear Capital Selects Equity Trust Company as Preferred Custodian. The organization is a leading self-directed IRA company for alternative assets in America.
The organization is a trusted custodian and administrator of $25 billion in assets for 170,000 clients. It empowers individual investors and financial professionals by removing barriers to investment freedom.