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3 Gold Mutual Funds to Buy As Middle East Tensions Flare Up
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Fresh tensions erupted between the United States and Iran last week, after the former killed the latter’s military leader in a targeted airstrike at Baghdad’s international airport. The assassination gave rise to fresh animosities, and these hostilities are likely to escalate, as Tehran prepares to retaliate and Washington’s defensive action could led to more steps to shield its embassies, diplomats and service members etc.
In such a geopolitical scenario, it is best to stick to safe haven investments. Mutual fund investors could thus consider investing in gold.
Iranian Military Leader Killed in U.S. Drone Strike
Qassem Soleimani, leader of the foreign wing of Iran’s Islamic Revolutionary Guard Corps, was assassinated on Jan 3 in a U.S. airstrike authorized by President Donald Trump. Soleimani was considered one of the top-notch, most-revered military leaders in Iran.
A statement issued by the U.S. Department of Defense confirmed President Trump’s authorization of the same. The move was termed “decisive defensive actionto protect U.S. personnel abroad by killing” by the defense department.
The Washington-Tehran relation has been rather shaky for quite some time, owing to tensions over a 2015 nuclear deal, United States’ economic sanctions on the Islamic Republic and Iran’s shooting down of an American drone over the Strait of Hormuz in June 2019.
But now, Soleimani’s assassination has led to further hostility between the two countries. The Islamic Republic’s Supreme Leader Ayatollah Ali Khamenei declared three days of mourning on Jan 3. On Saturday, Trump threatened to hit 52 Iranian sites “very hard” if Iran attacks U.S. citizens or assets.
Soleimani’s body was returned to Iran on Sunday. The very same day, Tehran said that the country would no more stand by its 2015 nuclear deal with global powers. President Trump had pulled U.S. out of the agreement in 2018.
Gold Hovers Close to Six-Year High
Gold, being a safe haven asset, witnessed a spike as investors flocked to buy the precious metal as they anticipated volatility in equity markets ahead.
Gold bullion rose 1.5% on the morning of Jan 3, nearing a six-year high. Gold’s uptick was a result of the assassination of Soleimani. Gold prices increased as high as $1,551.30 per ounce, less than a 1% gain away from its highest price since April 2013.
Given that U.S.-Iran relationship is on rocky ground and the possibility of a full-fledged war between the two countries is on the rise, one may anticipate gold prices to move higher ahead.
3 Gold Funds to Set Eyes On
We have, therefore, selected three mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and invest in companies that are engaged in various activities in the gold and precious metals industry. In addition, the minimum initial investment is within $5,000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
American Century Global Gold Fund A Class (ACGGX - Free Report) aims for total return, which comprises capital appreciation and dividends. The fund invests the majority of its assets in securities of companies that partake in mining, processing, fabricating or distributing gold. ACGGX is a non-diversified fund.
This Zacks sector – Precious product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
ACGGX has an annual expense ratio of 0.93%, which is below the category average of 1.39%. It has returned 39.3% over the period of a year. ACGGX has a minimum initial investment of $2500.
Wells Fargo Precious Metals Fund - Class A (EKWAX - Free Report) invests a majority of its assets in investments related to previous metals. The non-diversified fund may invest in U.S. and non-U.S. issuers alike. EKWAX seeks long-term capital appreciation.
This Zacks sector – Precious product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
EKWAX has an annual expense ratio of 1.09%, which is below the category average of 1.39%. It has returned 46.1% over the period of a year. EKWAX has a minimum initial investment of $1000.
Franklin Gold and Precious Metals Fund Class A (FKRCX - Free Report) seeks capital growth. The non-diversified fund invests the majority of its assets in securities of companies engaged in operations of gold and precious metals. The fund may also invest extensively in securities of small- and medium-capitalization companies.
This Zacks sector – Precious product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FKRCX has an annual expense ratio of 0.98%, which is below the category average of 1.39%. It has returned 50% over the period of a year. FKRCX has a minimum initial investment of $1000.
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3 Gold Mutual Funds to Buy As Middle East Tensions Flare Up
Fresh tensions erupted between the United States and Iran last week, after the former killed the latter’s military leader in a targeted airstrike at Baghdad’s international airport. The assassination gave rise to fresh animosities, and these hostilities are likely to escalate, as Tehran prepares to retaliate and Washington’s defensive action could led to more steps to shield its embassies, diplomats and service members etc.
In such a geopolitical scenario, it is best to stick to safe haven investments. Mutual fund investors could thus consider investing in gold.
Iranian Military Leader Killed in U.S. Drone Strike
Qassem Soleimani, leader of the foreign wing of Iran’s Islamic Revolutionary Guard Corps, was assassinated on Jan 3 in a U.S. airstrike authorized by President Donald Trump. Soleimani was considered one of the top-notch, most-revered military leaders in Iran.
A statement issued by the U.S. Department of Defense confirmed President Trump’s authorization of the same. The move was termed “decisive defensive actionto protect U.S. personnel abroad by killing” by the defense department.
The Washington-Tehran relation has been rather shaky for quite some time, owing to tensions over a 2015 nuclear deal, United States’ economic sanctions on the Islamic Republic and Iran’s shooting down of an American drone over the Strait of Hormuz in June 2019.
But now, Soleimani’s assassination has led to further hostility between the two countries. The Islamic Republic’s Supreme Leader Ayatollah Ali Khamenei declared three days of mourning on Jan 3. On Saturday, Trump threatened to hit 52 Iranian sites “very hard” if Iran attacks U.S. citizens or assets.
Soleimani’s body was returned to Iran on Sunday. The very same day, Tehran said that the country would no more stand by its 2015 nuclear deal with global powers. President Trump had pulled U.S. out of the agreement in 2018.
Gold Hovers Close to Six-Year High
Gold, being a safe haven asset, witnessed a spike as investors flocked to buy the precious metal as they anticipated volatility in equity markets ahead.
Gold bullion rose 1.5% on the morning of Jan 3, nearing a six-year high. Gold’s uptick was a result of the assassination of Soleimani. Gold prices increased as high as $1,551.30 per ounce, less than a 1% gain away from its highest price since April 2013.
Given that U.S.-Iran relationship is on rocky ground and the possibility of a full-fledged war between the two countries is on the rise, one may anticipate gold prices to move higher ahead.
3 Gold Funds to Set Eyes On
We have, therefore, selected three mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) and invest in companies that are engaged in various activities in the gold and precious metals industry. In addition, the minimum initial investment is within $5,000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
American Century Global Gold Fund A Class (ACGGX - Free Report) aims for total return, which comprises capital appreciation and dividends. The fund invests the majority of its assets in securities of companies that partake in mining, processing, fabricating or distributing gold. ACGGX is a non-diversified fund.
This Zacks sector – Precious product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
ACGGX has an annual expense ratio of 0.93%, which is below the category average of 1.39%. It has returned 39.3% over the period of a year. ACGGX has a minimum initial investment of $2500.
Wells Fargo Precious Metals Fund - Class A (EKWAX - Free Report) invests a majority of its assets in investments related to previous metals. The non-diversified fund may invest in U.S. and non-U.S. issuers alike. EKWAX seeks long-term capital appreciation.
This Zacks sector – Precious product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
EKWAX has an annual expense ratio of 1.09%, which is below the category average of 1.39%. It has returned 46.1% over the period of a year. EKWAX has a minimum initial investment of $1000.
Franklin Gold and Precious Metals Fund Class A (FKRCX - Free Report) seeks capital growth. The non-diversified fund invests the majority of its assets in securities of companies engaged in operations of gold and precious metals. The fund may also invest extensively in securities of small- and medium-capitalization companies.
This Zacks sector – Precious product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FKRCX has an annual expense ratio of 0.98%, which is below the category average of 1.39%. It has returned 50% over the period of a year. FKRCX has a minimum initial investment of $1000.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week.
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