Did you miss out on this golden opportunity in your portfolio?

22 November 2019
| By Chris Dastoor |
image
image
expand image

Gold funds have dominated the commodities and energy sector in 2019 with the top six performing funds in the sector being gold focused, according to FE Analytics.

Gold funds had a large boost during June to September this year, and although it had tailed off over the last couple of months, the asset class has provided a reliable hedge against periods of market instability during this year and the end of last year. Analysts also forecast another volatile and uncertain year for 2020.

FE Analytics data found within its Australian Core Strategies universe, the commodity and energy sector average return was 15.98% over the year to 31 October, 2019. This was the sixth best performing sector out of the universe’s 37 asset classes.

The top performing funds in the sector were BetaShares –  Global Gold Miners ETF Currency Hedged (57.76%), Market Access – NYSE Arca Gold BUGS Index EUR in AU (57.43%), Select – Baker steel Gold (54.03%), VanEck – Vectors Gold Miners ETF (50.27%), Perth Mint – Gold (26.22%), and BetaShares –Gold Bullion ETF AUD Hedged (21.20%).

VanEck – Australian Resources ETF (18.22%), State Street Global Advisors (SSGA) - SPDR S&P ASX 200 Resources (14.98%), BetaShares – Australian Resources Sector ETF (14.13%) and BT – Classic Investment BT Natural Resources (9%) followed the gold funds to round out the top 10.

The SSGA fund had half in basic materials (51.04%) and a quarter in oil and gas (25.42%); almost a third of its holdings in BHP Group (31.26%), followed by Rio Tinto (9.96), Woodside Petroleum (8.94%), Newcrest Mining (7.06%) and Fortescue Metals Group (4.51%).

The BetaShares – Global Gold Miners ETF regional weightings were largely concentrated to two key areas: North America (71.4%) and South Africa (16.5%).

Market Access – NYSE Arca Gold BUGS Index had 87.66% of its regional weighting in North America, with Newmont Goldcorp (14.83%), Barrick Gold Corp (14.01%), Agnico Eagle Mines (10.47%), Gold Fields (4.44%) and Helca Mining Co (4.32%).

Best performing commodity and energy funds v sector over the year to 31 October 2019

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago