Mutual funds investing in precious metals can be a safe haven of refuge when the economy is facing rough weather and markets are heading south. During such times, this category of mutual funds provides consistently higher returns and can outperform stocks. Additionally, a small amount of precious metals in a portfolio can provide sufficient diversification as well as protection against inflation. With the advantages of professional management, precious metals mutual funds are the brightest choice for investing in this sector.
Below we will share with you the 5 best performing precious metals mutual funds year to date. To view the Zacks Rank and past performance of all precious metals mutual funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| Tocqueville Gold | #4 Sell | 23.7% |
| Van Eck International Investors Gold A | #4 Sell | 22.4% |
| Oppenheimer Gold & Spec Min A | #4 Sell | 22.3% |
| American Century Global Gold | #2 Buy | 20.3% |
| USAA Precious Metals and Minerals | #4 Sell | 18.4% |
Tocqueville Gold (TGLDX) invests the majority of its assets in gold or companies involved in mining or processing of gold worldwide. The fund may also consider other precious metals for investment purposes. Up to 20% of its total assets may be invested directly in gold bullion and other precious metals. The precious metals mutual fund has a three year annualized return of 21.17%.
The precious metals mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.50% compared to a category average of 1.47%.
Van Eck International Investors Gold A (INIVX) seeks capital appreciation over the long term. It invests the majority of its assets are invested in companies whose major operations primary operations consist of activities related to gold. The precious metals mutual fund returned 54.62% in the last one year period.
The Fund Manager is Joseph M. Foster and he has managed this precious metals mutual fund since 1998.
Oppenheimer Gold & Special Minerals A (OPGSX) invests primarily in domestic and foreign companies whose major operations include mining, processing or dealing in metals and minerals. At least 25% of its assets are invested in mining securities and metal investments. It is non-diversified and has a ten year annualized return of 23.86%.
As of June 2010, this precious metals mutual fund held 110 issues, with 6.77% of its total assets invested in Red Back Mining Inc.
American Century Global Gold (BGEIX) seeks both capital growth and current income. The fund invests a large share of its assets in companies dealing in gold. This includes firms whose primary operations include mining, processing and exploration activities. It is non-diversified and a no load fund.
The precious metals mutual fund has a five year annualized return of 19.92%.
USAA Precious Metals and Minerals (USAGX) invests the majority of its assets in domestic and foreign companies with primary operations in the precious metals sector. The fund seeks to provide protection against inflation as well as long term capital growth. It is non-diversified and returned 47.38% in the last one year period.
The precious metals mutual fund has a minimum initial investment of $3,000 and an expense ratio of 1.19% compared to a category average of 1.47%.
To view the Zacks Rank and past performance of all precious metals mutual funds, then click here.
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 at http://www.zacks.com/funds/mutualfund/
