Precious metals funds can be a great addition to your portfolio, especially in times of economic uncertainty. They can offer superior protection against inflation, and protection against currency risk. Historically Precious metals funds outperform other sectors during a market downturn, and the current recession has proven this to be true. Precious metals funds, because they are diversified and professionally managed, offer the most stable option to invest in this sector.
Below we will share with you the 5 top rated precious metals 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, then click here.
Vanguard Precious Metals & Mining (VGPMX) invests the majority of its assets in both domestic and foreign companies whose principal operations include exploration, mining, processing, or distribution of gold and other precious metals. Up to 20% of the funds assets may be used to directly purchase precious-metals bullion and coins. The fund has a ten year annualized return of 17.79%.
This precious metals fund has a minimum initial investment of $10,000 and a very low expense ratio of 0.39% compared to the category average of 1.40%.
Franklin Gold & Precious Metals A (FKRCX) seeks long term capital growth with a secondary objective of generating current income. At least 80% of its assets are invested in precious metals companies in the small to medium market cap space. This precious metals fund returned 69.56% in 2009 and has a five year annualized return of 22.19%.
The Fund Manager is Steve Land and he has managed the fund since 1999.
Rydex Precious Metals (RYPMX) invests primarily in both foreign and domestic precious metals companies. It may also purchase ADRs and U.S. government securities and engage in futures and options transactions. It is a no load fund
The precious metals fund returned 51.6% over the last one year period.
Midas Fund (MIDSX) seeks to provide protection against inflation and capital growth. At least 65% of its assets are invested in companies whose principal operations include the productions and distribution of gold and other precious metals. The precious metals fund has a ten year annualized return of 11.56%.
As of December 2009, this precious metals fund held 42 issues, with 5.21% of its total assets invested in Silvercorp Metals Inc.
US Global Investors World Precious Minerals (UNWPX) invests the majority of its assets in companies primarily involved with exploration, mining or processing of gold and other precious metals. It looks to invest in companies with economic linkages to at least three foreign countries. This precious metals fund returned 89.5% in 2009.
Frank E. Holmes is the fund manager and has managed the precious metals fund since 1999
To view the Zacks Rank and past performance of all precious metals 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/
