Category Archives: Commodity Funds
Commodity funds are direct proof of holdings that may be backed up by physical products. In other words, if you are holding gold mutual funds backed up by stored gold bullion, you have a commodity fund. Holding commodity papers are much more convenient that storing physical deliveries of corn, hogs, oil or any other disposable commodity
1. GAMCO Gold A, Symbol GLDAX – This fund is rated as one of the top gold mutual funds to buy for most investors. The fund has more than 600 million in assets, and offers a yield and year to date return which are both over 3%.
2. Vanguard Precious Metals And Mining Fund, Symbol VGPMX- This Vanguard gold fund features a 4.3% yield
Silver mutual funds are a popular choice with many investors because of the record precious metals prices seen in the last few years. While gold and platinum are the most desired precious metals, silver is an excellent investment opportunity that does not require such a steep cost and can be managed by almost any investor. Just like REIT mutual funds, those that specialize in precious metals are not very diverse, but these funds are created that way and often do have some diversity in the fund portfolio for risk management. Silver mutual funds allow you to make one investment, and gain a portion of an entire portfolio of holdings in exchange.
Precious metals mutual funds can be found in many varieties, with different fees, fund objectives, minimum investment requirements, and other features. Some of these funds may specialize and hold only a single precious metal type, such as gold mutual funds which are mainly interested in gold and do not usually hold other precious metals in large percentages. Some precious metals mutual funds offer a much wider diversity, and may have holdings across the spectrum of precious metals, including gold, silver, platinum, copper, brass, and others. Before making any investment you should consider what your goals are, and then do the research necessary to find these funds which meet those goals.
There are a number of commodity mutual funds to consider, and these funds can include a diverse range of investments. There are alternative energy mutual funds, those that specialize in gold or other precious metals, funds which invest in agricultural commodities, and several other different types. Fidelity Select Materials, symbol FSDPX, has a four star Morningstar rating and the holdings of the fund include both Dow Chemical and Dupont, as well as other recognized names in the commodity industry. Another of the top commodity mutual funds to consider is PIMCO Commodity Real Return Strategy Fund, symbol PCRAX, which has more than twenty six billion dollars in assets and is heavy in commodities futures.