Gold saw such a surge in its price that the money flowing into funds like the SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU) increased exponentially.
Gold is an asset with universal appeal, so it’s impacted by the international monetary and political developments that directly affect the supply of gold.
The First Eagle Gold Fund Class A (SGGDX) is an alternative mutual fund that invests more than 80% of its net assets in gold and gold-related companies.
The VGPMX has performed poorly in the market in 2015. Top-weighted holdings Nevsun Resources and Dominion Diamond have fallen by 33% and 54%, respectively.
Nevsun Resources, Agnico-Eagle Mines, Randgold Resources, Dominion Diamond, and Genpact are the top five holdings of Vanguard Precious Metal and Mining Investment Fund (VGPMX).
VGPMX seeks to achieve its investment goals through an alternative approach to investing in firms that are directly or indirectly related to precious metals.
The precious metals market is feeling the heat of recessionary trends in the world economy. All three precious metal funds show a similar downward trend.
A high tracking error shows that the fund has failed on many occasions to meet its return requirement. The annualized tracking error of VGPMX is 24.79.
