How Has VGPMX Performed Historically Compared to Its Benchmark?


Dec. 12 2015, Updated 10:06 a.m. ET

VGPMX versus benchmark

The metal and mining sector are in a bearish trend mainly because of increased investment in production and weak demand from China, a major consumer. The Vanguard Precious Metal and Mining Investment Fund (VGPMX) has observed negative growth in 2015 and is still in a bearish trend. The benchmark index for the VGPMX is the S&P Global Custom Metals and Mining Index. The chart below analyzes the historical performance of the VGPMX with respect to its benchmark.

Article continues below advertisement

The VGPMX and the S&P Global Custom Metals and Mining Index

Though the VGPMX has fallen considerably this year, it has still managed to beat its benchmark index. The benchmark S&P Global Custom Metals and Mining Index, which is primarily invested in precious metals producing and processing firms, is down by almost 35% annually. On the other hand, the VGPMX has fallen by 28.3% in one year. Some of the top mining companies in which the VGPMX is invested in are Agnico-Eagle Mines (AEM), Randgold Resources (GOLD), Blount International (BLT), Newmont Mining (NEM), and Stillwater Mining (SWC), among others.

Low expense ratio

The VGPMX is managed by M&G Investment Management and Randeep Somel, who has more than ten years of experience as a senior analyst. Although alternative mutual funds have higher expense ratios than their traditional counterparts, as they aggressively manage their capital by mimicking various hedge fund strategies, commodities alternative funds have lower expenses. The VGPMX’s annual expense ratio is 0.29%, which is lower than most of its peers.

The next article in the series gives a detailed geographical holdings analysis of the VGPMX.


More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.