There’s still time for some moving and shaking in the mutual fund markets, but two out of the top five funds tracked by Morningstar have started to differentiate themselves: Dynamic Gold and Precious Metals I (DWGOX), which has returned 41.97 percent YTD, and PIMCO’s Real Estate Real Return Stategy A, which has returned 30.56 percent YTD.
It shouldn’t be a surprise that gold and real estate are leading the charge into 2011. Inflation appears imminent and that’s good for both precious metals and land values. Consider it a harbinger of things to come.
Here’s a look at the Morningstar’s current top five mutual funds with the highest returns:
|DWGOX||Dynamic Gold & Precious Metals I||41.97|
|PETAX||PIMCO Real Estate Real Return Strategy A||30.56|
|VEDTX||Vanguard Extended Dur Treas Idx Instl||28.27|
|PEDIX||PIMCO Extended Duration Instl||27.99|
|BTTRX||American Century Target Mat 2025 Inv||27.21|
Dynamic Gold & Precious Metals I (DWGOX) sets itself apart with a return that’s more than 11 percent greater than its nearest competitor. The fund invests 100 percent of its cash in materials with small-cap gold-mining stocks leading the way. Here’s a run-down on their most recently available Top 10 holdings:
|Osisko Mining Corp. Sh||TSE:OSK||9.67|
|San Gold Corp.||CVE:SGR||9.55|
|Perseus Mining Ltd.||ASX:PRU||6.77|
|Red Back Mining Inc.||TSE:RBI||6.35|
|Aurizon Mines Ltd.||AMEX:AZK||5.50|
|Eldorado Gold Corp.||TSE:ELD||5.26|
|Andean Resources Ltd.||ASX:AND||5.25|
|Allied Nevada Gold Corp.||AMEX:ANV||5.09|
|Agnico-Eagle Mines Ltd.||NYSE:AEM||5.08|
|Alamos Gold Inc.||TSE:AGI||4.71|
All but one of the mining stocks on the list above have had positive returns YTD: San Gold Corp., which has returned -4.32. Others, though, have exploded to the upside. Most notable among them: Andean Resources Ltd., which has returned 143.46 percent YTD, and Red Back Mining Inc., which has returned 101.87 percent. The moves prove two things: 1) all serious investors should study mutual funds for ideas on where the big money is, and 2) gold isn’t a fad – at least not yet.