A precious metals portfolio often concentrates on mining stocks. However, some funds invest in modest to substantial amounts of gold or silver bullion. Although gold mining equities receive the majority of allocations, many funds also provide significant exposure to other precious metals, such as platinum and silver.
The world is home to several of the largest precious metals corporations, many of which have their main offices in the US, Canada, Australia, and South Africa. Precious metals funds typically have higher volatility than the typical equity fund, similar to the majority of commodity funds.
Allspring Precious Metals Fund
In 1998, Wells Fargo debuted the Wells Fargo Precious Metals Fund (EKWAX). The fund‘s primary objective is long-term capital growth. In 2021, Wells Fargo Asset Management became an independent asset manager and changed its name to Allspring Global Investments.
The fund’s manager, Michael P. Bradshaw, aims to achieve this by typically investing 80% or more of the fund’s assets in businesses that actively engage in the exploration, mining, and processing of gold, in businesses that trade in gold and other precious metals and minerals, or in businesses that derive at least 50% of their revenue from such activities.
The fund may allocate up to 25% of its assets to debt securities backed by metals and up to 40% of its assets to equity securities of developing market nations. Capital gains and dividends are distributed yearly.
This fund’s net expense ratio is 1.84 percent. As of February 28, 2022, the fund’s five-year total return is 6.80%. As of March 18, 2022, this fund has $379.8 million in total assets in its portfolio.
Fidelity Select Gold Portfolio Fund
Fidelity Investments founded the Fidelity Select Gold Portfolio Fund (FSAGX) in 1985. The primary goal of this precious metals fund is to increase investors’ capital.
Under typical conditions, fund manager Steven Calhoun invests at least 80% of the total assets of the fund in gold bullion and coins as well as common stocks of companies that engage in various gold-related operations.
Additionally, investments are made in other precious metals, items whose worth is linked to the price of precious metals, and the stock of companies that sell goods like jewelry that contain precious metals and minerals. Both domestic and foreign-issued stocks are held by the fund.
The net cost ratio for the Fidelity Select Gold Portfolio Fund is 0.76 percent. As of February 28, 2022, the fund’s average total return for the previous five years was 6.73 percent. The fund’s total portfolio assets come to $1.3 billion.
Franco-Nevada, Agnico Eagle Mines, Newmont, and Barrick are a few of the fund’s top holdings.
Gabelli Gold Fund
In 1994, Gabelli Funds released the Gabelli Gold Fund (GLDAX). The primary goal of the fund is capital appreciation over the long term.
Caesar Bryan, the fund manager, accomplishes this goal by investing at least 80% of the fund’s total assets, along with any borrowed investment money, in domestically and internationally issued equity shares of companies that participate in gold-related business activities and in gold bullion. As of March 18, 2022, the fund’s portfolio as a whole contained $431 million in assets.
The net expense ratio for the Gabelli Gold Fund is 1.48 percent. As of March 18, 2022, this fund’s five-year average annualized return is 9.20 percent. Top holdings for the fund include Agnico Eagle Mines, Franco-Nevada, Newmont, and Barrick.
USAA Precious Metals and Minerals Fund
The USAA Precious Metals and Minerals Fund (USAGX), which was launched by USAA Investments in 1984 and has total portfolio assets of about $679 million as of March 18, 2022, aims to lessen portfolio volatility and preserve capital against inflation. A Victory Capital franchise is USAA Investments.
Mannik Dhillon, the manager of the fund, seeks to achieve these goals by typically investing at least 80% of the fund’s assets in local and foreign firms whose primary businesses are the exploration, mining, or processing of gold, silver, platinum, diamonds, or other precious minerals.
The USAA Precious Metals and Minerals Fund has a net expense ratio of 1.12%. As of February 28, 2022, the fund’s five-year average annual total return was 8.18 percent. The companies Newmont, Barrick, Agnico Eagle Mines, and Kinross are some of the fund’s biggest portfolio holdings.
Invesco Gold and Special Minerals Fund
The 1983-founded Invesco Gold and Special Minerals Fund (OPGSX) emphasizes long-term capital growth.
Shanquan Li, the manager of the fund, makes investments in the stock of mining firms with an emphasis on gold and other precious metals. As of March 18, 2022, the fund has $2.3 billion in total assets and a net expense ratio of 1.05 percent. The fund’s average annual return over the past five years is 12.57 percent.
Barrick, Northern Star Resources, Newmont, and Evolution Mining are among the major holdings. 75 percent of the portfolio’s assets are made up of gold.
Are Investments in Precious Metals Funds a Good Idea?
The unique investor, their investing objectives, and level of risk tolerance will determine what constitutes a “good” investment. Generally speaking, precious metals funds can be an excellent method to diversify a portfolio and a decent inflation hedge.
Which Precious Metal Makes the Best Investment?
The most often purchased precious metal has been gold. It is long-lasting, a good conductor of heat and electricity, and is regarded as a solid hedge against inflation. Its main usage, making jewelry, is also quite popular, and it is frequently used as money.
Which Precious Metals Are the Most Common?
Gold, silver, palladium, platinum, iridium, rhodium, ruthenium, and osmium are the main precious metals. Because they are scarce and have a high economic worth, precious metals are regarded as being valuable. These metals are also widely employed in industrial and jewelry procedures.