Understanding Investment Funds Focused on Mining Sector
This article provides an overview of mining-focused investment funds, including key options such as the Tocqueville Gold Fund, Fidelity Gold Fund, and U.S. Global Investors' offering. It explains how these funds invest in both physical metals and mining stocks, offering investors a diversified exposure to the precious metals sector. The piece highlights fund compositions, expense ratios, and important considerations for potential investors, serving as a useful guide for those interested in mining sector investments.
Introduction to Mining Sector Investment Funds
Investors seeking growth often explore options like metals and mining funds to diversify their portfolios. Among these, mutual funds specializing in precious metals are popular choices. These funds typically invest in mining stocks, primarily from gold mining companies, or hold physical assets like gold or silver bars. While gold dominates these holdings, many funds also include investments in silver, copper, nickel, zinc, and other base metals. Such funds offer a way to gain exposure to the mining industry and the commodity markets simultaneously.
Some leading options in this sector include:
- The Tocqueville Gold Fund (TGLDX) allocates around 9% of its assets to physical gold, with the remainder invested in prominent mining companies like Ivanhoe Mines, Iamgold, and Randgold Resources.
- The Fidelity Gold Fund (FSAGX), with lower fees, primarily invests in companies involved in gold mining, coins, and bullion. Major holdings include Goldcorp, Eldorado Gold, and Newcrest Mining.
- The U.S. Global Investors Gold and Precious Metals Fund (USERX) offers a diversified portfolio focusing mainly on gold, but also includes over 10% in platinum and silver companies. Key holdings are Royal Gold, Klondex Mines, and ETFS Physical Platinum, with an expense ratio of 1.54% and a short-term trading fee of 0.5% for holdings under ten months.
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