Fidelity Gold Funds: Is There a Better Choice?
Alex Long- The Fidelity Gold Fund has been one of Fidelity Investments' top-performing mutual funds.
- The fund invests in gold mining stocks, and as of July 2021, it has an 8.49% average return, placing it among the 10 best-performing funds in the Fidelity family of funds.
- Fidelity Investments' (FJI) Fidelity Gold Fund (FGLDX) is a closed-end fund that invests in primarily gold mining stocks.
- The fund was launched in 2007, and as of July 2021, it has an 8.49% average return, as of July 2021, placing it among the 10 best-performing funds in the Fidelity family of funds.
- The fund's expense ratio is currently 0.78%, according to Fidelity.
Fidelity Investments' (FJI) Fidelity Gold Fund (FGLDX) is a closed-end fund that invests in primarily gold mining stocks. The fund was launched in 2007, and as of July 2021, it has an 8.49% average return, as of July 2021, placing it among the 10 best-performing funds in the Fidelity family of funds. The fund's expense ratio is currently 0.78%, according to Fidelity.
Fidelity Gold Funds
1-2 Years
3-5 Years
6-10 Years
Now let's take a look at Fidelity's gold funds. The Fidelity Select Gold Fund (FSAGX) has $4.5 billion in assets under management, according to Morningstar. It is actively managed and invests in U.S. and international securities as well as U.S. Treasury securities. The fund has a 0.69% expense ratio.
The Fidelity Select Gold Fund has a 0.84% expense ratio. The fund invests primarily in securities of companies that are engaged in gold mining, exploration, processing, and production. The fund's objective also includes preservation of capital.
The Fidelity Select Gold Fund has a 0.85% expense ratio. The fund invests primarily in securities of companies that are engaged in gold mining, exploration, processing, and production. The fund's objective also includes preservation of capital.
The Fidelity Select Gold Fund has a 0.84% expense ratio. The fund invests primarily in securities of companies that are engaged in gold mining, exploration, processing, and production. The fund's objective also includes preservation of capital.
iShares Gold Trust
The iShares Gold Trust (IAU) is one of the most popular gold funds because of its low expense ratio (0.35%).
The fund has 6.43 million shares outstanding and 3.65 million shares outstanding as of July 18, 2021. As of July 18, 2021, it had a market value of $8.46 billion.
The fund's 12-month yield is 0.91%. It has a 1.76% expense ratio. As of July 18, 2021, the fund's bid-ask spread was 0.60%, and its average trading volume was 2,742,539 shares.
The fund's assets under management (AUM) as of July 18, 2021, was $9.47 billion. It invests nearly 95% of its net assets in gold bullion. The fund's top-10 holdings include (in order of market value):
Barrick Gold Corporation (ABX)
Goldcorp Inc. (GG)
Newmont Mining Corp. (NEM)
AngloGold Ashanti Ltd. (AU)
Gold Fields Ltd. (GFI)
Kinross Gold Corp. (KGC)
Newcrest Mining Ltd. (NCM)
Yamana Gold Inc. (AUY)
Franco-Nevada Corp. (FNV)
The SPDR Gold Trust (GLD)
Pros and Cons
Why Invest?
Low Costs
Fidelity charges 0.12% per year on funds with $10 million in assets or less, and 0.10% per year for funds with assets of $10 million or more.
Invests in ETFs
Gold funds often hold physical gold bullion, which can be a security or commodity. Fidelity Gold ETFs, in contrast, hold "physically settled" gold-backed ETFs, which convert physical gold into shares.
Good Customer Service
Fidelity customers have access to expert financial planners, fee-based investment managers, and a comprehensive directory of investment-related services.
Cons
High Fees
Fidelity Gold ETFs charge annual expenses of 0.25%.
Limited Selection
Investing in gold is complicated, as there are many different strategies for doing so. Fidelity only offers one gold ETF, the Fidelity Gold Bullion Fund.
Key Differences
Fidelity offers several different funds invested in physical gold. Its flagship product, Fidelity Select Gold Fund (FGLDX), was launched in 1994 and invests in gold bullion, gold-mining stocks, and other gold-related securities. The Fund has $1.2 billion in assets and an annual expense ratio of 1.75%.
Fidelity also offers the Fidelity Select Gold Bullion Fund (FSAGX), which invests in gold bullion. The fund was launched in 2013 and has $109 million in assets. Its expense ratio is 0.79%.
Fidelity also offers the Fidelity Select Gold Miners Fund (FSIGX), which invests in gold-backed mining companies. The fund has $308 million in assets. Its expense ratio is 1.60%
