First Eagle Gold
We all know about the rise of the SPDR Gold Trust (NYSE:GLD) ETF, with some $67 billion under management. But don’t think that means gold mutual funds are dead money. For centuries, gold has represented a safe haven in times of crisis or inflation, and investors are always looking for creative ways to use the precious metal to preserve capital.
Investors looking to put some gold into their portfolios — but perhaps not link performance directly to the ups and downs of the commodity — should look at the First Eagle Gold Fund (MUTF:SGGDX).
First Eagle has small exposure to other commodities like copper, silver and aluminum while focusing heavily on gold. More than 15% of the portfolio is invested in bullion — a significant amount, but not so much that you move in lockstep with the metal like GLD. SGGDX also holds substantial positions in miners like Goldcorp (NYSE:GG) and AngloGold (NYSE:AU) for diversification across the gold mining industry without losing its strategic focus.
First Eagle has returned about 6% annually during the past three years and 7.5% annually over the past five years, while expenses run at a low 1.2%. Unfortunately, performance year-to-date hasn’t been so hot as gold has fallen out of favor, with First Eagle’s fund off 20% while the broader market has rallied.